§ Q4. Mr. Bruce-Gardyneasked the Prime Minister what is the Government's policy regarding the level of unemployment.
§ Q8. Mr. Hefferasked the Prime Minister what is the overall policy of the Government as to the level of unemployment; and what instructions he has given to Ministers about the precise level at which unemployment should be maintained countrywide.
§ The Prime MinisterI would refer hon. Members to my speech in the debate on the Address on 31st October, and to the Answers I gave to Questions on 9th November.—[Vol. 753, c. 24; c. 1241; c. 1245.]
§ Mr. Bruce-GardyneWould not the Prime Minister agree that the situation has changed somewhat in the last few days? Is it not the fact that the Government have been asked to give specific commitments on the level of unemployment and on spare capacity in the months ahead as the price for additional support of the £, and should not these commitments first be discussed by the House?
§ The Prime MinisterThe answer to the hon. Gentleman's question—based on a certain amount of Press gossip—is "No"; and that Her Majesty's Government will take every action necessary to 629 achieve and maintain full employment, to which we are committed.
§ Mr. HefferIn my right hon. Friend's replies to Questions in the House on the occasion to which he refers, he used the word "realistic". Could he define precisely what "realistic" means in terms of unemployment? Is he not aware of the fact that whatever is done in support of work in the development areas is undermined by the general deflationary policy at present being pursued by the Government?
§ The Prime MinisterMy hon. Friend will be aware, of course, that the economy is now on the turn and showing strong signs of moving upwards—[Laughter.]—I will remind hon. Members of that ill-informed tittering quite shortly. This is now being shown both in relation to production—the progress of a number of industries—and in relation to the changing trend in the employment figures.
When I used the word "realistic" I was dealing with the position of certain prosperous areas in the Midlands and the South where, in recent booms, the figure of unemployment has been 0.5 per cent. or 0.6 per cent., and I mentioned the consequences that flowed from it. I do not believe that that is realistic. I believe that equalisation of employment opportunities in the development areas could lead to a realistic figure much lower in the development areas but higher in some of the other, prosperous, areas than in recent booms and times of labour famine.
§ Mr. RidleyIs it really true that yesterday the British delegation to the O.E.C.D. said that the Government expected that unemployment would not drop below 2 per cent. during the whole of 1968?
§ The Prime MinisterI am not informed on what was said, but I would be very glad to check up on the point. I had not myself seen the report—
§ Dame Irene Ward rose—
§ The Prime MinisterPerhaps the hon. Lady will wait for the rest of the answer. The latest estimates I have seen of the development in the economic situation, in particular industries and nationally, should lead to a lower figure than that on present policies; and the hon. Gentle- 630 man will know that only this week, for example, my right hon. Friend the President of the Board of Trade announced sweeping new policies for the development areas.
§ Mr. William HamiltonIs my right hon. Friend quite satisfied that the phasing of pit closures with the introduction of new male-employing industry in those areas subject to closures is sufficiently adequate to prevent—[Interruption.]
§ Mr. SpeakerOrder.
§ Mr. HamiltonAfter that typical bit of insolence from the hon. Lady the Member for Tynemouth (Dame Irene Ward), Mr. Speaker, perhaps I may repeat my supplementary question. Is my right hon. Friend satisfied that the phasing of the closure of pits with the introduction of new male-employing industry in those areas is sufficiently adequate to prevent the creation of considerable unemployment in those areas?
§ The Prime MinisterMy hon. Friend will by this time have studied the statement made by my right hon. Friend the President of the Board of Trade about special measures taken to help areas of most acute concern, which include most of the colliery closure areas. This will take time, of course, but we have intensified the measures now being taken far beyond anything ever done before. If my hon. Friend was suggesting the holding up of closures until these measures bring more employment, that raises wide questions of fuel policy which, I think, the House will debate in the very near future.
§ Mr. Bruce-GardyneOn a point of order, Mr. Speaker. In view of the totally implausible nature of the Prime Minister's reply, I beg to give notice that I shall seek to raise the matter on the Adjournment.