North-East (Hansard, 6 December 1961)

§ 20 and 21. Mr. Grey
asked the Minister of Labour (1) what steps he is taking to reduce the increased level of unemployment in the North-East;

§ 22. Mr. Pentland
asked the Minister of Labour if his attention has been drawn to the increased number of unemployed in the North-East; what are the causes of this; and what steps he is taking to remedy the position.

§ 38. Mr. Boyden
asked the Minister of Labour to what causes he attributes the recent increase in unemployment in the North-East region; and what special measures he has taken to deal with the situation.

§ Mr. Hare
Much of the recent rise in unemployment in the North-East is accounted for by normal seasonal factors. The rest is due mainly to reduced activity in shipbuilding and ship-repairing, in iron and steel manufacture and in construction. The Government are already doing all they can to attract additional industries into the areas where high unemployment persists.

§ Mr. Grey
Is the Minister aware that we are becoming tired of being fobbed off with this kind of reply, not only to these present Questions but to previous ones? Is he not aware that no matter what he or his right hon. Friend the President of the Board of Trade may say, the figures in the North-East have reached a new peak and are now higher than they were 18 months ago? Does he not regard that as a most serious factor, particularly happening at this time of year? If the trend is not reversed in the next few months the position will get even worse, so will he demand from his right hon. Friend the President of the Board of Trade some immediate action to cure this problem?

§ Mr. Hare
I shall certainly draw to the attention of my right hon. Friend the President of the Board of Trade what has been said. I am aware—indeed, my right hon. Friend and I are both very much aware—of the needs of the area, but the fact that there are at 1372 present about 27,000 jobs in prospect is evidence of the action which the Government have been taking to steer new industries to this area.

§ Mr. Pentland
Would the right hon. Gentleman admit quite frankly that there are two reasons for the persistent and increasing rate of unemployment in the North-East? The first is the restrictionist policy which the Government put into effect every year or two, and the second is that the North-East has been starved of the vital new industries that are necessary to offset the decline now taking place in the basic industry.

§ Mr. Hare
I have already indicated, and I think that the hon. Gentleman must have heard me, that a lot has been done to bring new industries to the North-East area. I would not, however, like to talk about a decline in the old industries. I do not believe that the shipbuilding industry should accept as a fact that it has to decline. I believe that if both sides of that industry can get together and become more competitive, they and it have a great future.

§ Mr. Boyden
Has the Minister noted the very warm approval given in the North-East to the appointment of my hon. Friend the Member for Stockton-on-Tees as Director of the North-East Development Association, and will he give my hon. Friend and the association every possible encouragement, and consult them in order to get some fresh ideas?

§ Mr. Hare
I do not know about hon. Gentlemen opposite, but I personally very much welcome the appointment of the hon. Member for Stockton-on-Tees (Mr. Chetwynd), and would certainly join with the hon. Member for Bishop Auckland (Mr. Boyden) in wishing his hon. Friend the very best of luck in his job. I can assure the House that any assistance I can give I certainly shall give.

§ Mr. Prentice
In one reply after another to my hon. Friends from this region the Minister has referred to the decline in the basic industries in that area as though it were like the weather—something that could not be helped. Is it not the fact that the Government's economic policy of the last 1373 few months has accentuated and accelerated that decline? Secondly, if there is a decline, is it not all the more urgent to bring new industries to the area? Is the right hon. Gentleman aware that in his replies he has not said a word about that?

§ Mr. Hare
I do not think that the hon. Gentleman really listens to the Answers that are given. First, I have said that the Government are bringing new industries to the area, and, secondly, I have just said that I do not think that we should assume that the shipbuilding industry has to decline. I believe that if both sides in it can get together the industry has a great future, and I would not write it off even if the hon. Member would.

§ Mr. Prentice
Would the Minister say what further plans he has?

§ Mr. Pentland
On a point of order, Mr. Speaker. The right hon. Gentleman has said that I should not assume that the shipbuilding industry will decline. I never inferred that for one moment.

§ Mr. Hare
I am glad that the hon. Gentleman did not.

§ Mr. Shinwell
The Minister has referred to the decline of the shipbuilding industry. Is he not aware that it employs a very large number of semi-skilled and, occasionally, unskilled workers, and is not this precisely where the Government have failed to take any action? Why do the Government not do something about those people?

§ Mr. Hare
I have said that part of the cause of this position has been the temporary decline in shipbuilding activities. I believe that this industry can make itself far more competitive, and we should not assume that it will not succeed in carrying out, as it always has in the past, the rôle of being one of our major exporting industries.