HC Deb 04 July 1968 vol 767 cc1685-7
Q2. Mr. Marten

asked the Prime Minister whether in the light of the unemployment figures, he is satisfied with the co-ordination between Ministers dealing with the redeployment of labour and the needs of the export drive.

The Prime Minister

Yes, Sir.

Mr. Marten

Since the number of wholly unemployed has been above the half million mark for the last 14 months, how can the right hon. Gentleman say that he is satisfied? Can he say what level of unemployment he regards as full employment, and when he hopes that that position will be achieved?

The Prime Minister

As the hon. Member knows, the position is that with all the efforts which have been made, and the new situation, there are abundant opportunities for our manufacturers to get export orders. Many are showing great success in doing so. This will involve taking on more labour in order to fulfil those export orders.

Mr. Mendelson

Whilst recognising that redeployment is working successfully to some extent, does not my right hon. Friend accept that the general level of unemployment is disturbingly high for this time of the year? Will not he now consider taking further measures to reduce unemployment by encouraging an increase in consumption?

The Prime Minister

It is too high, but I believe that the right way to get it down is by deployment in the export field, for which there are abundant opportunities. I would not support any proposals—nor would hon. Members opposite—for increasing home consumption and going in for an import boom when it is an export-led expansion that we need.

Mr. Maudling

Does not the Prime Minister recall that, in his Budget speech, the Chancellor said that the Government had no intention of creating unemployment in advance of the demand of export industry? He referred to not digging a hole before they could fill it in. Is not that precisely what is happening?

The Prime Minister

In fact, my right hon. Friend's reference to digging the hole was originally made last November. As to the position since the Budget, there has been very little change in the level of unemployment, but the number of export opportunities has greatly increased. I thought that, if right hon. Gentlemen opposite had any criticism, it was that we had allowed too much home market consumption.