HC Deb 21 July 1976 vol 915 cc1778-80
8. Mr. Teddy Taylor

asked the Secretary of State for Scotland if he will make a further statement on the economic outlook in Scotland.

Mr. Millan

While the figures for total unemployment announced yesterday show a substantial increase, much of this is due to the registration of summer school leavers. Employment prospects for the rest of this year should be considerably enhanced by the growth in output and exports nationally. Prospects beyond that depend greatly on the continued success of the Government's policies to reduce the rate of inflation and to maintain economic recovery.

Mr. Taylor

Is the right hon. Gentleman aware that his lack of leadership and ideas in the current unemployment disaster is gaining him the reputation of being the most useless, idle and complacent Secretary of State in Scotland's history? Why does he not make way for someone who can speak and fight for Scotland and get results?

Mr. Millan

The hon. Gentleman speaks with so many voices and rides so many horses at the same time that he is like a one-man Derby. The unemployment figures are extremely serious, but my right hon. Friend the Secretary of State for Employment said yesterday that the Government are considering further measures, with particular reference to the young unemployed.

Mr. Sillars

Despite all the peripheral measures, such as job creation, is it not part of deliberate Government policy to create high unemployment so as to discipline the working classes? Did not the Labour Government come to power in 1974 with a pledge to create full employment? Is my right hon. Friend aware that if the Government continue to create and use unemployment he will deservedly earn the reputation of being a member of the first Tory Labour Government in history?

Mr. Millan

That is an absolutely monstrous suggestion for the hon. Member to make. It is untrue to say that the Government are using unemployment as an instrument of policy. No one is more anxious than the Government to reduce the unemployment figures as rapidly as possible. We have taken a number of measures, such as the subsidy to school leavers, the temporary employment subsidy and the job creation programme, which have already saved about 23,000 jobs in Scotland. As I have said, my right hon. Friend the Secretary of State for Employment hopes to make a further statement shortly about further measures.

Mr. Henderson

Is the right hon. Gentleman aware that the Secretary of State for Employment, in reply to me yesterday, indicated that he would be making an announcement shortly? Will he tell us what representations the Scottish Office has made to the Department of Employment for specific measures to deal with the appalling condition of Scottish unemployment?

Mr. Millan

I can tell the House that I have been closely involved in all the discussions that have taken place regarding further measures.

Mr. Cryer

Does my right hon. Friend agree that unemployment in Scotland, England and Wales offers the same grim prospect? Does he agree that Socialist solutions are now needed? Does he accept that they should include resisting blackmail from international bankers who want to cut public expenditure? Does he agree that cutting public expenditure will increase and not decrease unemployment? Will he assure the House that he will resist this blackmail, as to resist it is the only way out?

Mr. Millan

I agree that whether unemployment occurs in Scotland, England or Wales, it is an equally serious problem. There is a history of long-term unemployment in various parts of Scotland that is especially serious. It is true, as my right hon. Friend the Prime Minister said yesterday, that any cuts in public expenditure are likely to have a short-term effect on reducing employment, hut it is equally true that unless we get our economic policy right the longer-term prospects for employment will be very bad.

Mr. Younger

is the right hon. Gentleman aware that he has now secured his reputation as the Secretary of State who has presided over the highest level of unemployment since the 1930s? What does he now think of the former Prime Minister's assurance, in the October election, that he saw no reason for unemployment to increase any further?

Mr. Millan

What the House and the hon. Gentleman must keep in mind in the present situation is the international background. Unemployment prospects are not merely a matter for the United Kingdom or for Scotland; similar problems are being faced by all the industrialised nations. However, unless we get inflation and the economy generally under control, the longer-term prospects for employment are not good. Therefore, we must principally and primarily direct our attention towards the underlying economic problems.