HC Deb 10 July 1973 vol 859 cc1243-5
9. Mr. Wyn Roberts

asked the Secretary of State for Employment if he will operate the quota system for foreign workers in order to assist the tourist and catering trades, in view of the labour shortage in holiday resorts.

10. Mr. Adley

asked the Secretary of State for Employment what representations his Department has received about the effect of EEC membership on the availability of non-EEC nationals for employment in the hotel and catering industry in the United Kingdom; and if he would make a statement.

Mr. Dudley Smith

The hotel and catering industry already receives a special quota of 5,000 permits for overseas workers. My right hon. Friend has the needs of the industry in mind and will keep the administration of this quota under review. The subject of EEC membership has arisen in discussions between the industry and officials of my Department. There has been no effect on the availability of non-EEC nationals to work in hotels and catering in the United Kingdom.

Mr. Roberts

I understand that it is Government policy to reduce the number of 5,000 who are available to the hotel and catering industry. Does he think that this policy is wise in view of the current shortage of labour in the resorts and the dearth of suitable people for training?

Mr. Smith

Progress is being made on training. Later in the year consideration will be given to the changes in quota for 1974, and the labour supply position will be taken into account. At the same time the method of allocation will be reconsidered to strike as fair a balance as possible between the needs of employers who have recruited foreign workers in the past and those who have not. We are keeping the situation under review.

Mr. Robert C. Brown

Does the hon. Gentleman feel it advisable to reduce this quota, or does he feel that it would be preferable to abolish it altogether, so that the hotel and catering industry will then have to face up to the fact that to attract staff it will have to pay adequate wages?

Mr. Smith

No, Sir. What we are trying to do and I know that the trade unions have views on this matter—is to strike a happy medium. As The Times recently said, the main problem now facing the industry is that it is failing to attract British workers even when unemployment is high. The industry is now beginning to realise this. It is doing something about it and we are trying to help. We must not have too large a quota, but it would be disastrous if we cut off the supply entirely and harmed the tourist industry.

Mr. Adley

While declaring an interest in the hotel industry, may I ask my hon. Friend whether he is aware that hardship is being caused particularly in those regions of the country where we are unduly dependent on tourism, and that regional economies can be in danger if employment of the traditional type is not brought forward? Since under the EEC provisions manufacturing industries have a system of transitional arrangements, should not the service industries enjoy similar transitional arrangements?

Mr. Smith

Now that we are members of the EEC, there is nothing to prevent EEC workers from coming here and working without permits in this country in the hotel and catering industry. The answer does not necessarily lie with other foreign workers coming in from the EEC area or from non-EEC countries. I very much agree with the Chief Executive of the British Hotels and Restaurants Association who recently said that the only way to overcome the situation is by an all-out campaign to get over to careers masters, parents and young people what employment in the industry involves. The industry is on the upgrade and is playing an increasingly important role in the life of this country.