§ Q4. Mr. Eadieasked the Prime Minister if he is satisfied with the co-ordination between the Department of Trade and Industry and the Department of Employment concerning the development of labour-intensive industry; and if he will make a statement.
§ The Prime MinisterYes, Sir. The two Departments work closely together on all aspects of employment policy.
§ Mr. EadieBut does the Prime Minister agree that there is concern in the country about jobs being lost because 1234 of technological obsolescence, for example, and that the figure of one new job created for two jobs gone out of existence is often quoted? Does he therefore agree that there is a need for a detailed study of labour-intensive industries, and that any contraction of them without such a study would do a great disservice to the nation?
§ The Prime MinisterMost manpower-intensive industries carry out, and have carried out, studies to discover what their future manpower requirements are likely to be. We can think of major industries, such as the nationalised power industries, that have done that. I do not think it would be possible to do an overall and complete survey of all the manpower-intensive industries, but we had a discussion of the matter at Question Time recently, when it was raised in a supplementary question by the hon. Member for Tottenham (Mr. Atkinson).
§ Mr. ChurchillIs my right hon. Friend aware that there are as many jobs at risk at the British Steel Corporation's Irlam works as there are at Upper Clyde Shipbuilders, and that with only a fraction of the resources to be pumped into the Upper Clyde the Irlam Steel Works could be operated profitably, saving several thousand jobs in the Greater Manchester area? Will he take a personal interest in the matter?
§ The Prime MinisterThe British Steel Corporation has already had a very large investment programme approved by this Government, and it stretches several years ahead. But it is for the Corporation to decide what form that modernisation should take and where it should be. Therefore I cannot deal with any particular instance. What is right is to ensure that the Corporation has a large investment programe both for modernisation and, if it so decides, for expansion.
§ Mr. Harold WilsonIn relation both to the study of fuel and power and energy policy announced yesterday by the Secretary of State for Trade and Industry and the talks with industry about inflation and all the associated problems, will the Prime Minister commission studies from his advisers about the particular problem that has defeated all Governments in this country up to now—the problem that so many of the public industries, 1235 including service industries like the Post Office, nursing and many others, are labour-intensive, which means that if those employed in them are to receive wages or salaries comparable with those in private industry there is a heavy burden on the industries' finances, which might have price effects right through the economy? Will the right hon. Gentleman commission a study to see whether there can be a new approach to the problem of how those in labour-intensive public industries can receive fair salaries and wages without affecting inflation generally?
§ The Prime MinisterI agree with the right hon. Gentleman that that is one aspect of the problem, which affects nationalised industries to a large extent. Questions of economic cost and manpower employed, and so on, will form part of the review of the power industries. These matters must be taken into account in the decisions reached by the Government.