HC Deb 15 December 1976 vol 922 cc1512-4
15. Lord James Douglas-Hamilton

asked the Secretary of State for Scotland if he will make an up-to-date statement on the extent of unemployment in Scotland.

17. Mr. Monro

asked the Secretary of State for Scotland what consultations he has had with industry in Scotland regarding the high level of unemployment.

Mr. Millan

In October, the latest figures available, total unemployment in Scotland fell by 3,400, compared to September, to 158,000.

In the course of meetings with various industrial bodies and visits to Scottish industrial firms I have kept abreast of their views on Scottish industrial matters including unemployment.

Lord James Douglas-Hamilton

Is the Secretary of State aware that the unemployment figures in Scotland are nearly double what they were under the previous Conservative Government? Will he now recognise that there is a case for reducing interest rates in order to encourage much more employment in Scotland?

Mr. Millan

I recognise that the unemployment figures are far too high, and it is part of the Government's policy that interest rates should be reduced as soon as the economy allows it.

Mr. Monro

Is the Secretary of State aware that the Government have failed miserably to live up to their election promises of October 1974? Now that unemployment is running at exceptionally high levels, will he assure us that the Chancellor of the Exchequer understands that profits in industry are essential if industry is to expand and offer more employment?

Mr. Millan

The Government have taken a number of steps recently. In particular, the latest revision of the Price Code should have important implications for profitability, especially when followed by increased investment.

Mr. Henderson

Does the Minister intend to introduce any further measures soon to deal with this situation, or does he think that the Government have done all they can?

Mr. Millan

We have taken a considerable number of measures. The various employment protection and job creation schemes which we have introduced have provided about 38,000 jobs already in Scotland, and this has provided some amelioration for the situation. We are always ready to consider such further measures as are necessary.

Mr. Canavan

Does my right hon. Friend agree that the unemployment situation in Scotland would have been even worse if we had had the emasculated version of the Scottish Development Agency such as that proposed by the hon. Member for Perth and East Perthshire (Mr. Crawford), supported by the Tories, instead of the public enterprise version of the SDA proposed by the Labour Government?

Mr. Millan

I agree with my hon. Friend. I noted that the Conservative Party recently suggested that the industrial role of that agency should be removed. The suggestion was greeted with considerable criticism not only from the STUC but from the CBI in Scotland.

Mr. Younger

How can the right hon. Gentleman maintain that he will do all he can to reduce the unemployment level when the Labour Government are introducing a payroll tax of 2 per cent. on national insurance contributions, which is sure to throw thousands more people out of work?

Mr. Millan

I have in mind the fact that the many billions in public expenditure cuts favoured by the Opposition would have a disastrous effect on employment. The subject of the National Insurance Surcharge has been considered in the House in recent weeks at some length.