London

HC Deb 13 April 1976 vol 909 cc1121-4

3. Mr. Tebbit

asked the Secretary of State for Employment if he is satisfied with the level of employment in London.

The Under-Secretary of State for Employment (Mr. John Fraser)

No, Sir.

Mr. Tebbit

At least that is of some comfort, because we can find agreement on that. Will the hon. Gentleman consider most carefully not so much the present level of unemployment in London—although it is at an historic high—but the level of jobs in London, which has been on a long decline for some years, especially in the manufacturing sector? Will he examine regional policies to ascertain what can be done to arrest the decline?

Mr. Fraser

I have considered these matters. There has been a decline of about 500,000 jobs in the manufacturing sector. That has been partially compensated by an increase in jobs in the service industries. However, we are concerned about the mismatch between what people want to do and the jobs that are available. The hon. Gentleman will have noticed a recent relaxation in the issuing of industrial development certificates that allows for slightly larger developments to take place without an IDC. That policy allows for a renewal of obsolete factories on a speculative basis.

Mr. Molloy

Is my hon. Friend aware that a number of firms have been moving out of London—a movement that has had an effect on the training of skilled manpower? Will he give an assurance that there will be no let-up in industrial training for the youth of London?

Mr. Fraser

Yes, I can give that assurance. The problem in London is normally an acute shortage of manpower. The way to match the demand for jobs and job opportunities, which I am confident will become available, is by way of training.

Mr. Anthony Grant

Is the hon. Gentleman aware that an answer to a Question from me revealed that in the Greater London area unemployment has increased by 159 per cent, in the past two years? Is he further aware that much of that increase in unemployment stems from the policies of the Government and of local government, which have deterred small firms and moved them away from the area? Unless the hon. Gentleman wants Greater London to become a sort of concentration camp of Government bureaucrats and head office administrators, what on earth is he going to do? What pressures will he bring to bear on the GLC?

Mr. Fraser

I have already indicated that there has been a relaxation of IDC policy. That relaxation will have assisted smaller firms to remain in London. Secondly, I must re-emphasise that normally there is an acute shortage of manpower in London. In 1974 there were 3.4 unemployed unskilled workers for every unskilled vacancy, which was perhaps the lowest figure in the country. When we consider the increase in unemployment in the South-East generally we must bear in mind, and take some comfort from the fact, that it is not only the development areas that have taken the worst brunt of the rise in unemployment.

Mr. Russell Kerr

I shall risk appearing to agree with the hon. Member for Chingford (Mr. Tebbit). Will my hon. Friend have a special look at the problems in and around West London, including my constituency, to ascertain what special measures may be required? Over the past year there have been many examples of a deteriorating situation, which must be of concern to my right hon. and hon. Friends.

Mr. Fraser

I have similar problems in my own borough—the borough of Lambeth. I am prepared to examine the special difficulties that my hon. Friend has in mind in any part of London where there is an unemployment black spot.

15. Mr. Molloy

asked the Secretary of State for Employment if he will publish in theOfficial Reportstatistics for the last quarter on the relative rates of unemployment in each London borough.

Mr. John Fraser

I regret that this information is not available. Rates of unemployment can be calculated only for the whole of Greater London.

Mr. Molloy

Is my hon. Friend aware that the rates of unemployment change dramatically from one London borough to another? Is he prepared to consider calling a London conference involving representatives of the GLC, the London boroughs, trade unionists and employers to make a proper assessment of the problem and to contribute to its solution?

Mr. Fraser

I cannot undertake an exercise of that magnitude without discussion with my colleagues. It is true that there are pockets of difficult employment problems in London. I have always expressed a willingness to discuss these matters with representatives of the GLC and others and I shall continue to do so.

Mr. Peter Bottomley

Does the Minister agree that the unemployment rate in London has risen drastically during the last two years, through unrestrained pay increases and unrestrained Government spending? Would not a reversal of those two policies help to bring down unemployment?

Mr. Fraser

Unemployment in London has risen from 2 per cent, to 3.7 per cent. Of course, policies that restrain the rate of inflation will help, not only in London but throughout the rest of the country, to under-write employment security.