HC Deb 18 November 1971 vol 826 cc622-5
Q2. Mr. William Hamilton

asked the Prime Minister if he will establish a new Ministry to deal exclusively with unemployment and the social and economic problems flowing from it.

Mr. Maudling

I have been asked to reply.

I have nothing to add to the answer my right hon. Friend gave on 9th November to Questions from the hon. Members for Bolsover (Mr. Skinner) and Birmingham, Northfield (Mr. Carter).—[Vol. 825, c. 125.]

Mr. Hamilton

Does the right hon. Gentleman recognise that under the present Government at any rate such a Minister would be guaranteed full employment? In view of the obscenity of the figures announced this morning and the outrageous all-time post-war record in Scotland of 141,000 totally unemployed, will the Government now announce when they think that the unemployment figures will go down, or will they give an estimate when they think they will reach 1½ million?

Mr. Maudling

I do not think the party opposite was singularly fortunate in its forecasts about unemployment. Certainly it did not forecast, in the years when it was in office, that unemployment would double. On unemployment generally, as I have said, the reflationary element in Government policy—the reduction of interest rates, further Government expenditure—is already on a scale, I think, greater than this country has ever seen. As far as Scotland is concerned, large new expenditure in public investment has already been embarked upon and other projects are being studied.

Mr. Roy Jenkins

Is not the right hon. Gentleman aware that it was not our forecasts but forecasts from the other side of the House which were consistently wrong about unemployment figures during the period of the last Parliament, when they were consistently forecast to go above three-quarters of a million and they never got anywhere near it? Does not the right hon. Gentleman recognise the extreme gravity of the figures published today, which show by far the worst position we have had since 1939? Does he not recognise that it is no good our reading day after day statements from the Prime Minister and other Ministers saying that unemployment is improving when the hard figures show that it is getting worse? Will he not recognise that the Chancellor of the Exchequer, in each of his four main economic forecasts this year, has been wrong on un- employment, and will he not give an assurance that the Government will now come to the House at any early stage and give their detailed forecasts and plans for dealing with the gravest social problem that has faced this country for a generation?

Mr. Maudling

I will certainly recognise the seriousness of today's unemployment figures if the right hon. Gentleman, in his turn, will recognise the scale of the efforts already made and of the reflationary measures already taken, and also accept the scale of the inflationary problem which his party left to us.

Mr. Raison

While accepting that it would be absurd to set up a new Ministry, may I ask my right hon. Friend whether he is satisfied that enough is being done to examine the nature of unemployment today and, in particular, how far it is structural?

Mr. Maudling

Yes, almost certainly one of the problems of the present trend in unemployment is the structural factor, the slimming down of a lot of enterprises by reducing the labour force by higher productivity. This is one of the factors.

Mr. Heffer

Is not the right hon. Gentleman aware that people will have very little confidence in statements by his right hon. Friends that they are once again dealing with the problem of unemployment? In the North-West in the last month the increase in unemployment has been, in real terms, 6,000 extra workers. Last year the percentage was 2.8. This year it is 4.7. Is it not a fact that this Government have totally failed and shown themselves to be completely inept in dealing with the economic problems of the country? Is it not now clear to the right hon. Gentleman that we in this House want a series of clear policy statements from the Government that they will at last get down to dealing with this terrible problem affecting our people?

Mr. Maudling

I do not seek in any way to minimise the seriousness of the situation, but I must repeat once again that the problem with which we have been dealing has been one of rising unemployment which we took over, together with roaring inflation.

Mr. Ross

Will the Home Secretary convey to the Prime Minister—though he probably will not set up a new Ministry—that at least he should get rid of the men who have so far failed Scotland and Britain? Even he can read this statement: A new impetus for Scotland, Campbell says". That was on 27th October last year. Since that time, the new impetus has led to another 45,000 unemployed. We now have the highest figures, even beating the figures when the present Prime Minister was at the Board of Trade and responsible for employment. We are sick of these complacent statements. Will something be done about this problem?

Mr. Maudling

I have already referred to the large measure of expenditure already put into Scotland and to the fact that my right hon. Friend is considering further projects.