§ 46. Mr. Doddsasked the Prime Minister, in view of the widespread concern at the possibility of substantial reductions in defence contracts and serious effects on the life of communities where these orders provide a major source of employment, what consideration has been given, and by what Departments, to deal with any situation that may arise, and what decisions have been made as to the action to be taken to meet eventualities.
§ Mr. R. A. ButlerI have been asked to reply.
The Ministry of Supply and the Admiralty consult the Board of Trade and the Ministry of Labour about proposed reductions in defence production. Where there is scope for choice in deciding where reductions should be made the effect on local employment is taken fully into account. Where significant reductions in the numbers employed have to be made the longest possible notice is given to the Board of Trade and the Ministry of Labour, both as regards Government establishments and private firms, so that every effort can be made to find new tenants for the factories, where that is necessary, and new jobs for the workers.
§ Mr. DoddsIs not it evident that there are likely to be some very severe drops in Government expenditure? Does not the 511 Lord Privy Seal think that in view of that fact some special step should now be taken to ensure that if this happens in a big way there will not be any distress which could have been avoided?
§ Mr. ButlerWe have the experience of the twelve months ended November, 1957, when, although we thought that the numbers employed had fallen by about 18,000, the numbers unemployed in that time rose only by 541. There is a good deal of absorption. I shall certainly draw to the attention of my right hon. Friend the Minister of Labour the point raised by the hon. Member, of which I think and hope he is aware.