29. Mr. Edward M. Taylorasked the Secretary of State for Economic Affairs on what criteria he bases the policy outlined in the new economic planning document of making a reduction in the present level of unemployment consequential upon an improvement in the balance of payments.
§ 26. Sir H. d'Avigdor-Goldsmidasked the Secretary of State for Economic 1785 Affairs what is the reduction in unemployment which the new planning document allows from its present level between now and 1972 on the basic case.
§ 31. Mr. Hordernasked the Secretary of State for Economic Affairs to what extent it is the policy of the Government that there should be a connection between the balance of payments position and the level of unemployment.
§ Mr. ShoreFull employment is a major aim of the Government's policy. The size and speed of the reduction in unemployment cannot be exactly predicted since it depends on progress with the balance of payments, achieving a better balance of regional employment and on such factors as success in retraining and redeploying workers.
Mr. TaylorIs the Government's current economic strategy designed to secure an increase or a reduction in the present unemployment rate? Can the Minister say, in particular, whether the economic strategy takes into account the securing of trade union reform legislation within the next 12 months?
§ Mr. ShoreThe hon. Gentleman has already been told the timetable for the Measures on industrial relations—[Interruption.] It is for someone else to answer that Question, not for me.
On the hon. Gentleman's main point, the basic case put forward in the planning document, which he will see if he reads it carefully, is wholly consistent with a decline in unemployment in the period of the assessment.
§ Mr. HordernCan the Minister answer the Question which I put down? Is there, in the Government's view, a direct link between the level of unemployment and the balance of payments position?
§ Mr. ShoreI will. I should have thought that it was self-evident, even to the dimmest intelligence, that a nation has to earn its living and that, if it cannot earn its living by its ordinary trade and other transactions, in a country like ours, employment will inevitably suffer.
§ Mr. Iain MacleodThe right hon. Gentleman knows the anxiety in the House about the unemployment figures. Does he recall the statement of the Prime Minister on 20th July, 1966, that the upper limit might be of the order of 2 per cent.? Is the right hon. Gentleman aware that for about 21 months the figure has been above 2 per cent.? Does he see any prospect of it dropping below that?
§ Mr. ShoreYes, Sir. As the economic assessment makes clear, we assume that there will be a decrease in unemployment over the period of the assessment. What we have not attempted to do is to give a time path of this change because it crucially depends on the two factors which I mentioned earlier, success with the balance of payments and success in our regional policies.
§ Mr. James HamiltonIs my right hon. Friend aware that the economic strategy is now proving beneficial to Scotland? Is he further aware that in 1963, when the Opposition were the Government, there were 136,000 unemployed people in Scotland, whereas the figure is now 80,000? Is my right hon. Friend further aware that the trade unions will play their part in carrying out the White Paper, "In Place of Strife", provided that managements measure up to their responsibilities?