HC Deb 19 July 1956 vol 556 cc1382-3
44. Mr. Chapman

asked the Minister of Labour how many employees in trades ancillary to the motor industry have recently been dismissed; and to what extent his Department has been successful in finding alternative employment for them.

Mr. Iain Macleod

According to reports from my local offices nearly 1,000 persons in the motor vehicle accessory and rubber industries were dismissed in the two weeks ending 14th July. I have so far received no reports from my local officers of any special difficulties in submitting those concerned to other employment.

Mr. Chapman

As this constitutes a widening of unemployment from the original decisions of the B.M.C. and other motor car manufacturers, is it not time that the Government considered, as I have suggested to the right hon. Gentleman, issuing a new White Paper explaining how, within the overall level of full employment, we maintain the flexibility that is needed with full employment, a White Paper which would tackle all the problems of movement to other jobs and of compensation, and give a general community lead on this issue to the nation as a whole?

Mr. Macleod

As the hon. Member says, this is a widening of the position. To that extent it makes the provision of other employment easier, because as the redundancies are more scattered, so it is possible to submit people for other jobs. On the question of an inquiry into the motor car industry and the matters relating to compensation, etc., I have nothing to add to previous Answers which the President of the Board of Trade and I have given.

Mr. Lee

As the slackness is now spreading to these ancillary industries, will the Minister consider asking the Chancellor of the Exchequer whether he does not feel that his credit squeeze is now getting out of hand, and will result in heavy unemployment unless he stops it?

Mr. Macleod

My right hon. Friend the Chancellor answered that very point in the recent debate on unemployment.