HC Deb 21 March 1974 vol 870 cc1308-9
10. Mr. Edward Taylor

asked the Chancellor of the Exchequer if the maintenance of full employment will be a primary objective of his economic policy.

Mr. Healey

Yes, Sir.

Mr. Taylor

Can the Chancellor give a clear and unqualified assurance that he will not, as did the last Labour Government, seek to solve our economic problems by deliberately creating unemployment? In particular, will he have a quiet word with some of his foolish and extremist colleagues who, by the cancellation of the Greek good will visit, have put at risk, if they have not lost altogether, £70 million of frigate orders for the Clyde and many jobs in an area of high unemployment?

Mr. Healey

I must say that I find it a little surprising that the hon. Gentleman, who for a time was a member of the last Government, should have forgotten that they increased unemployment to a higher level than at any time since 1926 and were responsible over the past three months for an increase of unemployment even greater than that, an increase which, I am glad to say, today's unemployment figures show to have been replaced by a reduction of some 500,000 in the number of temporarily unemployed.

Mr. William Hamilton

Will my right hon. Friend give an assurance that in no circumstances will the Government go back to a three-day week?

Mr. Healey

Yes, I can give that assurance with pride and satisfaction.

Mr. Carr

May I remind the Chancellor that the question refers to the maintenance and therefore the long-term basis of full employment? Is that his policy? He will recall that in his party's last period of office unemployment doubled. It was lower when we left office than when we took office.

Mr. Healey

First, let me congratulate the right hon. Gentleman on his assumption of the responsibilities I held until very recently, and particularly on assuming them in conditions which do not require him to attempt to justify the actions of his predecessor who held my responsibilities at that time. I assure the right hon. Gentleman that it is my intention to maintain the highest level of employment which is compatible with sustainable and rapid growth.