HC Deb 29 January 1963 vol 670 cc897-908

Motion made, and Question proposed, That this House do now adjourn.—[Mr. Peel.]

10.9 p.m.

Mr. Frederick Peart (Workington)

I want to raise tonight a very important matter, concern about which is shared by my hon. Friend the Member for Whitehaven (Mr. Symonds)—the problem of unemployment in West Cumberland.

West Cumberland seems a long way from Westminster, but it is a very important area with great traditions and we are anxious about its future. We raise this matter now so that we may hear from the Government what they intend to do about unemployment in the area. Recently, the Government asked Viscount Hailsham to assume responsibility for dealing with unemployment in the North-East. When I heard of this, I immediately wrote to the Prime Minister to ask him what were the intentions of the Government in relation to West Cumberland. West Cumberland has been associated with the Northern Region and we were anxious to know what our position was.

In my letter to the Prime Minister, I asked what was the Government's policy for this area, which had as high an incidence of unemployment as the North-East. Were we to be a separate development district, or to be included with the North-East; were Viscount Hailsham's duties to cover not only the North-East, but West Cumberland, which is in the Northern Region; or were we to have to wait for a separate scheme for North-West England? I am sorry to say that the Prime Minister's reply on 23rd January was not satisfactory. He said: Dear Peart, Thank you for your letter of January 10 about West Cumberland. The problems arising from the industrial structure in the North-East and the number of the unemployed in the area create a special problem which is not reproduced in a comparable scale in West Cumberland or indeed in other areas of high unemployment. This does not mean that nothing will be done for these other areas. The facilities of the Local Employment Act will continue to be available where appropriate in the development districts in these areas, and in their steering of new industry the Board of Trade will continue to take account of local unemployment rates. I hope, moreover, that West Cumberland, in common with other areas, will benefit from the measures taken in recent months by the Government to stimulate the economy generally. Yours sincerely, Harold Macmillan. I regard that letter as a shockingly complacent approach to our problems, because we are still left in a state of uncertainty.

We are anxious partly because we are in the Northern Region and partly because our administrative regional offices have been concentrated in Newcastle. What is to be the Government's policy towards West Cumberland? Only yesterday figures were revealed by the President of the Board of Trade and by the Minister of Labour which showed percentages of unemployment in the area. My hon. Friend the Member for Whitehaven will be able to indicate the seriousness of the position in his area.

The figures given yesterday by the Minister of Labour were that in Workington there were 8.5 per cent. unemployed; in Aspatria, 8.5; per cent.—that is in the constituency of the Parliamentary Secretary to the Ministry of Labour—in Cockermouth, 8.5;per cent. and in Maryport, 8.5;per cent. Those figures indicate a seriousness of unemployment in the area comparable with that of any other area. Although the area is relatively small, it is an old development area, and the percentages if not the numbers compare with areas in the North-East and on Merseyside.

I do not disagree with the Government's approach to the North-East in appointing Viscount Hailsham. They had to take dramatic action and I hope that something will be forthcoming, although I suspect that this is a gimmick. If it is not a gimmick, I should like to know what is to be done and whether the area will receive comparable treatment. So far, I have not had an answer from official quarters.

The Prime Minister spoke of the need to stimulate the economy generally. Why do we have this situation in West Cumberland? We have a special problem, but it is partly because of Government policy over the years. The Prime Minister cannot escape responsibility for it.

In Liverpool the other day, the Prime Minister made a speech in which he dealt with unemployment. To quote from the Liverpool Daily Post of Monday, 21st January, the Prime Minister said: Among the reasons why employment in this country has become less buoyant of late, one of the most important is the slow-down in the growth of world production and trade. Another is the fall in private industrial investment due to uncertainty about world trade, the United States economy and the Common Market. And then, let us face it, unemployment can be traced to uncertainty about the outcome of the next General Election. What a terrible approach to unemployment.

I say to the Government and to the Prime Minister that my people are patriotic. They are anxious to give of their best. They believe that industrialists are not affected by such things as the uncertainty of the General Election and that there are patriotic industrialists who would invest in the area if given encouragement and if we could accept the broad policy of a progressive Government. I do not accept the Prime Minister's approach.

My constituents have given of their best to develop the country's resources. In a crisis during the war, they also gave of their best. They are anxious to have the tools to do the job. We have good labour conditions and a fine area and fine people. If given opportunities, they could deliver the goods. They did so in the post-war period, when West Cumberland was scheduled as a development area under the stimulating leadership of men like the late Lord Adams and under policies that were created partly by the diligent work of my right hon. Friend the Member for Battersea, North (Mr. Jay), when at the Board of Trade. We were able to have a buoyant economy in the area and to see that it developed and that people were given work.

I want to see a reversal of the existing policy. The figures are known to the Board of Trade and I will not give details of each constituency. I have a letter from the then Parliamentary Secretary to the Board of Trade dated 5th March, 1962. After representations were made to him by my hon. Friend the Member for Whitehaven and myself, the Minister promised to let us know how many new jobs there were in each of our areas. He mentioned the 600 new jobs which we estimate to be in prospect in the Workington group of employment exchange areas". He went on to say: The best I can say is that we would expect about 275 of the total number to accrue within the next' two years. Out of this total of 600 new jobs the number we estimate to be in prospect in the Maryport area is, as I said, about 400, arising mainly from three projects for which approval in principle has recently been given for Government factories. Of this 400 we would expect only a comparatively small proportion—say, 150—to accrue within the next two years. Are those jobs accruing? This is where there is uncertainty. The situation has deteriorated. I am not thinking merely in terms of loss of employment because of seasonal difficulties. The whole situation in the area has gone from bad to worse. That is why I want action. Either, as I said in my letter to the Prime Minister, the area should be scheduled as a development district, or we should be included with the North-East or given treatment similar to Merseyside.

The situation cannot be left as it is. The area must be treated as a whole. We are, however, prepared to fight for limited objectives. For example, I should like Workington and district to be removed from the stop list. The Parliamentary Secretary could make that announcement this evening. I hope that something will be forthcoming, because the situation is serious.

I cannot go into details in a short speech, but there are many capital projects which could be helped by the Government. I think of the supply of water, which is now the responsibility of the West Cumberland Water Board. I hope that the Board will be enabled by the Government to proceed with the Third Crummock supply scheme, which is estimated to cost about £750,000. We need water for industry. We also need new capital development schemes in the County of Cumberland which will provide work for many constructional workers who are now unemployed.

I mention only one project, but there are many others which I could stress. There is a need to improve road communications. These capital projects are vital both in my constituency and in that of my hon. Friend the Member for Whitehaven. I do not want to allow my enthusiasm and passion for this subject to prevent my hon. Friend the Member for Whitehaven from making his contribution to the debate.

We have submitted many projects to the Board of Trade. I hope that the Board of Trade will inject new life into those Government Departments which could do so much to help the area. I have in mind the communications to which I have referred, and the building of new factories. I also have in mind the giving of assistance to industries which are already there.

Local authorities in the area are anxious to improve their amenities, and, contrary to what the Sunday Times said the other day, this area is not derelict. Workington and district is a very good area in many ways. We have plenty to offer. There is the wonderful Lakeland. There is the area of Cockermouth and the whole of Wordsworth country. All this is on the fringe of some of the most beautiful scenery in the world. This area has been much maligned by recent publicity, and I am glad that my local authority has protested strongly about this.

The executives of many firms which have moved to the area—firms manufacturing such things as fabrics and chemicals—enjoy not only the amenities, but the social life of the area. They have developed their industries and attracted the good will of the people in the area. We are not begging. We are merely asking to be given a priority similar to that given to the North-East and Mersey-side, and I hope that this evening the Minister will give us some information on this point.

We know that there are problems in the area with industries like coal and steel, but I am certain that if the area were treated as a whole the problems of these older industries, together with the problem of extensions for new industries, could be solved, and I ask that West Cumberland be given some priority in dealing with its problems. We have taken the unprecedented step of raising this matter after a major debate on unemployment, but I am sure that my colleagues in the North-East and on Mersey-side agree that something must be done for this area, and that the Government tonight should announce a positive policy for dealing with our problems.

10.23 p.m.

Mr. J. B. Symonds (Whitehaven)

I take the opportunity of joining my hon. Friend the Member for Workington (Mr. Peart) in speaking on behalf of the people of West Cumberland, who feel that they have been completely neglected. This is because of the strain of signing on at the employment exchange and suffering the degradation of having to say that they have to exist on unemployment benefit.

They ask why it is that we are not classified as part of the Northern Region where, for administrative purposes, we have the Northern Regional Hospital Board and the Northern Regional Board for Industry. The people of West Cumberland were surprised when Lord Hailsham was appointed to deal with the North-East only. Why? Surely we in West Cumberland have a problem equal to that in the North-East.

My hon. Friend has given the figures for his constituency. The figure for the Whitehaven and Cleator Moore area is 4.9; per cent. During the last month or five weeks it has risen by over 1 per cent. and there is a prospect that 1,000 men who work at the atomic energy station will be paid off within the next day or two.

This time last year the President of the Board of Trade promised that there would be 200 or 250 jobs in the Whitehaven division within two years. I had hardly reported that to my constituents when 60 men had to sign on at the employment exchange. They feel sore because nothing is being done for them. The rising tide of unemployment makes it difficult for men to keep their tempers when they have only the unemployment benefit on which to depend. They ask what is being done for them. But local authorities have been told to help themselves.

I suggest that the road between Whitehaven and Millom, in West Cumberland, be put into proper order. I have received a letter from a local authority in my area drawing attention to the urgent need to improve the West Cumberland coast road to assist the area's industries and ease the unemployment situation. It would also be an advantage if an alternative road route could be provided. While there have been road blockages caused by ice and snow in other parts of the country the west coast road has been open. The route over Shap has been blocked—

Mr. W. M. F. Vane (Westmorland)

Would not the hon. Gentleman agree that the question of priorities is meaningless so long as the communications to West Cumberland by road and rail are so bad, and that the basic need is to improve the road and rail communications to the South?

Mr. Symonds

It may be that the hon. Member is correct to a degree—

Mr. Vane

To a high degree.

Mr. Symonds

—but I hope that he is not speaking for the Government, who have neglected West Cumberland, particularly over the last two years. I maintain that the improvement of the West Cumberland route would result in the opening up of that part of the country and would provide an alternative route to the route over Shap.

There is something else which might be done immediately. I understand that a new fast breeder reactor has been promised for Capenhurst. We have the facilities and we demand that a fast breeder reactor be provided at Windscale, so that the jobs of 1,000 men may be saved. That is a matter of importance to West Cumberland. Were a fast breeder reactor provided at Sellafield, or at Windscale, men who would normally be paid off would be able to continue in work.

There are other things which I could say, but I want to hear what the Minister has to say in reply to my hon. Friend and to me and, therefore, I will now give him an opportunity of at least five minutes to answer.

10.30 p.m.

The Parliamentary Secretary to the Board of Trade (Mr. David Price)

I think that I shall have to cut short my remarks a bit. If I leave out certain points I am sure the House will forgive me. I think that in many ways this debate is the sequel to the meeting which I had last Wednesday with a deputation from Cumberland County Council which the two hon. Members were good enough to bring to see me.

I must be frank with the House and say that I am afraid I shall not be able to add a great deal tonight to what I said to the deputation last Wednesday. I do not think that, despite what he said, the hon. Member for Workington (Mr. Peart) expects more of me tonight. One thing I can assure him of is that my right hon. Friend the President of the Board of Trade and I are studying very carefully the proposals which he and his colleagues on the County Council made to me last week, including the proposals about the Board of Trade regional organisation.

I should like to have given the hon. Members fuller details of the present unemployment position, but in the short time available to me I think they will forgive me if I do not give them tonight. I wanted to make the point which I made to the County Council, that it is at the trend that one must look rather than the figures from month to month, but the trend is not one, certainly in the case of Workington, which gives any room for complacency at all.

What is the remedy for West Cumberland's problems? In the first instance, as the hon. Member himself indicated, we must look to a general expansion in the economy. The House will be familiar with the measures which my right hon. Friend the Chancellor of the Exchequer has taken to expand the economy and it is to these, along with any other measures which in due course he may deem it wise to take, that West Cumberland must look to produce the necessary economic climate in which the particular problems of the county may be tackled.

Secondly, we have to see whether there are any structural problems in the economy of West Cumberland which require special attention. As the hon. Member has said. West Cumberland has been experiencing difficulties in its traditional heavy industries, coal mining, iron ore mining and the highly specialised section of the steel industry.

As the trend in the unemployment figures shows, these difficulties in the traditional industries of West Cumberland have affected the Workington and Aspatria areas most of all. As the hon. Member will know from our meeting last Wednesday, we in the Board of Trade are fully seized of these problems. As I told his deputation, we are considering very carefully whether the time has not come to restore to the Workington area the full facilities of assistance under the Local Employment Act. As the House will know, Workington was placed on the so-called stop list some time back because the situation had then improved.

Mr. Peart

Take it off.

Mr. Price

I would remind the House that Workington is still a development district. I know that the hon. Member will know that I cannot say more tonight on this particular matter.

Mr. Peart

Name the date.

Mr. Price

Further south, in Whitehaven, unemployment although above the national average is not as high as in Workington. Nor does Whitehaven depend so greatly upon the traditional heavy industries. In that part of Cumberland two major new industries have been established, chemicals at Whitehaven and nuclear energy at Sellafield. Today, nuclear energy provides employment for over 5,000 people in West Cumberland and is thus a larger employer than the traditional basic industry of coal mining. I know that the hon. Member is anxious for as much assurance as I can give him about the future level of employment at the Atomic Energy Authority's establishments. I understand from the Authority that changes in the military programme will cause a small reduction in staff required at Windscale and Calder, and this will mean there will be little local recruitment over the next two years except to replace wastage among such people as typists, junior clerks and canteen assistants, but the intake of apprentices will not be reduced. There is no question in present circumstances of changes on the scale of those at Capenhurst. Although redundancies in operational staff are not likely, the same cannot be said about constructional workers, many of whom may be discharged in the near future. How many of these will be local men we cannot at present say. Nor can we foretell how many will be able to find other jobs locally, but I can assure the hon. Member we shall continue to keep the most careful watch over the next few months over the trend of employment in his area of West Cumberland.

The hon. Member said that the Board of Trade had been over-optimistic in its estimate of jobs in prospect. These estimates are based, and must necessarily be based, on what we are told about employment prospects by the firms to which we issue industrial development certificates for new factories or extensions. Changes in the economic climate may cause these firms to postpone or even to abandon previous plans. However, I can assure the hon. Member that we still expect forthcoming expansions in West Cumberland to produce over 600 jobs in the next three or four years. Be that as it may, I am mindful that more jobs are still needed, particularly for men.

There have been closures of Service establishments in West Cumberland in recent years. There may be others. Closures of this kind are inevitable. I can only say that we keep ourselves closely informed of the likely effect on employment of such closures. The disposal of the premises is a matter for the departments which own them. If we are asked to help in their disposal to industrial tenants we do so gladly.

Furthermore, we in the Board of Trade for many years have been making a continuing contribution to employment in West Cumberland through the Board of Trade factories. These total some 1,378,000 sq. ft. of factory space and give employment to 5,500 workpeople, of whom 2,400 are men.

This takes me to a question which I am sure the hon. Member would have raised, if he had had time, because the county council did, the question of the rentals charged for our factories in Cumberland. As I think the hon. Member knows, we are able to let Board of Trade factories in active development districts at preferential rates. But if we agree to extend any of our factories in areas elsewhere, that is in areas not listed as development districts or areas on the so-called stop list—development districts for which we are no longer accepting applications under the Local Employment Act—our current policy is to charge an annual rent equal to 10 per cent. of the building cost.

We have no wish to discourage firms outside the development districts from expanding and we are normally willing to build extensions for our tenants, but there is no justification for charging an uneconomic rent. Such firms have already had a considerable amount of Government assistance in one form or another. When they expand it is perfectly right that they should pay a fair commercial rent. However, if Workington came off the stop list, the Board of Trade would be able to charge preferential rents.

I am aware that West Cumberland is inclined to think of itself as somewhat remote, tucked away in a corner of the country, but is it all that remote? After all, one can reach Carlisle by train from London in less than five-and-a-half hours. The industrial areas of Workington and Whitehaven are not then far away. Nevertheless, I recognise that distance from London and the Midlands is a factor, if only one, in the minds of Southern and Midlands industrialists in determining where to locate their new projects. However, West Cumberland has the inestimable advantage of being on the edge of the Lake District, which is not unimportant when considering social problems. Few industrial areas have such a glorious hinterland. Nor does it suffer from over crowding. The hell of the rush hour does not affect West Cumberland greatly. Nevertheless, I recognise the hon. Member's concern.

Question put and agreed to.

Adjourned accordingly at twenty-one minutes to Eleven o'clock.