HC Deb 06 July 1967 vol 749 cc1971-3
14. Mr. Milne

asked the First Secretary of State and Secretary of State for Economic Affairs what action he is taking, following representations from the Northern Regional Council of the Labour Party, about the present unemployment level in the Northern Region; and if he will make a statement.

Mr. M. Stewart

We are already taking further steps to strengthen the economy of the Northern Region. The new regional employment premium, in particular, should act as a powerful stimulus to both new and existing industry there.

Mr. Milne

Is my right hon. Friend aware that, while his Answer goes some way towards solving the problems we face at the moment, a greater sense of urgency is still needed before we can bring to the Northern Region the full employment that both Front Bench and back bench Members on this side of the House promised in the last two General Elections?

Mr. Stewart

Yes, Sir. There, remain many things which the Government want and intend to proceed with in order to help the situation in the Northern Region. But, as I pointed out in the debate on the regional employment premium, there has been a perceptible narrowing of the gap between rates of unemployment in the country as a whole and the development areas.

Dame Irene Ward

But is the right hon. Gentleman aware that the insistence on the regional employment premium is absolute nonsense as regards the expansive programme we want in the North-East? Is he aware that in the mining, shipbuilding and marine engineering industries everything is in disrepair? When will he act?

Mr. Stewart

A number of measures has been taken both in the North and elsewhere to improve the industrial strength of the regions. There has been the action over investment grants, improvement of infrastructure and advance factories. Those whom the hon. Lady claims to represent—

Dame Irene Ward

I do represent.

Mr. Stewart

—will be surprised to hear her view that regional employment premiums are nonsense.

Mr. Shinwell

Is not my right hon. Friend aware that it is a matter of great concern that in Sunderland unemployment is now above 7 per cent. and that in some parts of my own area it is over 5 per cent.? The industries concerned —shipbuilding in Sunderland and mining in my area—will not be affected by the Government's new proposals.

Mr. Stewart

I know that there are these difficulties associated with the traditional industries in the North and in certain other areas. That is why, among other things, we must try to stimulate new industrial growth there.

Mr. Iain Macleod

How does the First Secretary explain that the latest unemployment figures, not for any particular area but for the country as a whole, are the worst June figures since the war?

Mr. Stewart

The right hon. Gentleman must put that as a Question to my right hon. Friend the Minister of Labour. It goes wider than the regional considerations in the Question.

Mr. Leadbitter

Will my right hon. Friend bear in mind that, whereas it is a matter of fact that the regional levels of unemployment have closed somewhat with the national levels, that does not minimise the serious hardship in the Northern Region, particularly where men over 40 may be a large percentage of the unemployed? Will he give an undertaking that this aspect of the unemployment problem must be looked at?

Mr. Stewart

I certainly give the undertaking for which my hon. Friend asks, and I would not wish to say anything to minimise the seriousness of the employment problem in this region and in certain others. But I do not think that this should blind us to the fact that the Government have taken a whole range of measures which have been of real benefit to the regions where this problem is most difficult and heavy.

Mr. Ridley

Is the right hon. Gentleman aware that the level of unemployment rose by 0.1 per cent. between May and June? What level of unemployment does he think will result in the North-East in the coming winter?

Mr. Stewart

A little while ago the hon. Gentleman urged me not to make prophecies. I think that I must return that advice to him.

Mr. Manuel

Is my right hon. Friend aware that there are certain areas in the country, especially the fringe areas, where private enterprise industry simply will not go, and that unless he fulfils the pledge made at the last General Election to site publicly owned and operated industries in those areas we shall have them denuded of the people there today?

Mr. Stewart

The Government will be prepared to take whatever measures are necessary to deal with this problem.