HC Deb 29 April 1971 vol 816 cc688-9
4. Mr. Carter

asked the Secretary of State for Employment what are the latest unemployment figures for Birmingham.

Mr. Dudley Smith

At 5th April, there were in the Birmingham travel-to-work area 23,539 people registered as unemployed, of whom 3,848 were temporarily stopped. The rate of unemployment was 3.4 per cent. These figures are provisional.

Mr. Carter

That is an intolerably high figure, the worst for over 30 years in Birmingham, and it is growing rapidly with each month. Does not the hon. Gentleman consider, therefore, that it would be right for his right hon. Friend to urge the Chancellor of the Exchequer to stimulate the economy so that the motor car and engineering industries, in particular, might grow and offer more job opportunities?

Mr. Smith

The figures are, of course, too high, and the danger of their going even higher would be caused by cost inflation. That lesson has been put forward many times, and it is significant that a growing number of the reductions which have taken place in labour forces have been caused almost exclusively by labour-increased costs.

Sir G. Nabarro

Will my hon. Friend bear in mind that the Draconian measures introduced after the devaluation of sterling in 1968 have no possible relation to economic conditions today, and that Birmingham and adjoining areas such as South Worcestershire, housing many motor industry workers, are gravely concerned about the steady increase in unemployment? In such circumstances, would it not be proper to follow the dictum and advice of the Crowther Committee and abolish all hire-purchase restrictions as the first essential in stimulating the motor industry in Birmingham?

Mr. Smith

My hon. Friend is too old a hand not to know that that is not a question for me. There is growing concern about unemployment, particularly in the motor car industry, but, if costs keep on escalating, this has an impact on the employment situation.

Sir G. Nabarro

In view of the very unsatisfactory reply to the hon. Member for Birmingham, Northfield (Mr. Carter), I beg to give notice that I shall seek to raise the case of the motor industry on the Adjournment at the earliest opportunity.