§ 13. Mr. Stonehouseasked the Secretary of State for Employment what is the current level of unemployment in the United Kingdom in Scotland and in the West Midlands, respectively; and what steps he is taking to reduce these levels.
§ Mr. John FraserAt 12th February, the rates of unemployment were 5.6 per cent. in the United Kingdom, 6.8 per cent. in Scotland and 5.7 per cent in the West Midlands.
The most important steps for the reduction of unemployment are those to bring inflation under control, and we are taking these. In addition, a wide range of measures have been introduced, 1115 and others are being considered, to mitigate unemployment.
§ Mr. StonehouseIs it not a fact that unemployment has been growing at a faster rate in the West Midlands than in almost any other part of the United Kingdom? Does this not make a lunacy of the policy of stealing jobs from the West Midlands in order to take them elsewhere? Will the Minister press, within his Department and elsewhere, for the bureaucratic system of the IDCs to be scrapped?
§ Mr. FraserIf my right hon. Friend had listened to the replies given earlier by my right hon. Friend, he would know that the IDC policy in the West Midlands is operated flexibly. When I have been to meetings there many people have told me that to blame it all on the IDC policy is a mistake, and I think they are right in that respect. It is true that there are no development area aids to the West Midlands, but we have to consider development area aids in terms of long-term structural problems and other problems which we hope will be of a temporary nature.
§ Mr. HendersonWill the Minister confirm that the rate of unemployment in Scotland has been consistently higher than in any other part of the United Kingdom, and that we find ourselves—[Interruption.] Indeed, if we can make this comment to the peanut gallery on the Tribune side here—[Interruption]—it has been disgraceful compared to every other progressive small European country. Will the Minister accept that the whining coming from Midlands Members sounds very strange in Scottish ears, as they have never raised their voices about Scottish unemployment in the past?
§ Mr. FraserI repudiate that the rate of unemployment in Scotland has risen dramatically. The unemployment situation in Scotland has improved relative to the position in the rest of the United Kingdom—not least because of the development aid and the assistance which has gone to Scotland from the Government of the United Kingdom.
§ Mr. Edwin WainwrightDoes my hon. Friend realise that there is over 9 per cent. unemployment in the Mexborough and district employment exchange area? 1116 Does he also realise that the Swinton Hotpoint factory has already announced that some redundancies will take place in the near future? Will my hon. Friend do something special for this area, where unemployment will rise to 12 per cent. unless something is done?
§ Mr. FraserMy hon. Friend has tabled a Written Question, which I shall answer later, about special provisions for this area. I understand that the Hotpoint factory to which he has referred is on short-time working at present. No doubt my hon. Friend will also want to make representations to my right hon. Friend the Chancellor of the Exchequer in connection with VAT.
§ Mr. StokesIs the Minister aware that industry in the West Midlands—as represented by both employers and employees—want the Government to get off its back, reduce taxation and allow it is make profits?
§ Mr. FraserI think that the people of the West Midlands are also glad of the public expenditure, which comes from taxation, that has gone to save the jobs at Alfred Herbert, British Leyland and Chrysler, and which I am sure the hon. Gentleman, in his heart of hearts, actually opposes.
§ 14. Mr. Kilroy-Silkasked the Secretary of State for Employment if he will make a statement on the employment prospect this year of those currently unemployed.
§ 17. Mr. Ioan Evansasked the Secretary of State for Employment whether he will make a statement on the current level of unemployment.
§ Mr. FootThe next monthly figures will be published next week, on 23rd March. Of course they will still show an appalling high level of unemployment. However, even under present harsh conditions there is a considerable volume of turnover on the register and many of the unemployed do have a good chance of re-entering employment. I expect the number of vacancies to increase gradually this year.
§ Mr. Kilroy-SilkWelcome though the Government's measures have been there are still far too many people unemployed for far too long. Does my right hon. 1117 Friend accept that this is especially severe in regions like Merseyside, where the people have had a dismal past and face a dismal future? Will he not take action now and press my right hon. Friend the Chancellor of the Exchequer to put into effect some reflationary measures?
§ Mr. FootI fully accept that Merseyside is one of the areas most hardest hit. Certainly my right hon. Friend the Chancellor of the Exchequer will be taking into account all the representations that have been made to him for further measures which can be of real assistance in dealing with the present unemployment level.
§ Mr. Maxwell-HyslopWill the Secretary of State have a look at the ridiculous system whereby assisted area boundaries run along the boundaries of employment office areas? Witnesses from his own Department told the Expenditure Committee that the boundaries of employment areas depend on journeys by bicycle to and from employment offices, because that was the basis on which we proceeded more than a quarter of a century ago. Can we get away from this nonsense to something more real?
§ Mr. FootI think that the hon. Gentleman has been misinformed. The travel-to-work areas to which he referred were, I think, overhauled most recently in 1968. I do not believe that they can be changed considerably from time to time, but a time will come when there should be a general review of the special development areas.
§ Mr. EvansDoes my right hon. Friend realise that he has been particularly successful in getting the co-operation of the trade union movement to reduce the number of industrial disputes and the rate of inflation? Will he now meet the TUC leaders, with a view to producing some positive plans to bring down the rate of unemployment?
§ Mr. FootAll the plans that we introduced in the three packages in September and December of last year and in February of this year, had been discussed with the trade unions. It was partly on their recommendations and advice that we improved those schemes and we shall certainly continue to do so. However, it is also the fact that at all the meetings I 1118 have had with the trade union leaders they have emphasised their strong feelings about the present level of unemployment. Certainly that is one of the factors the Government must take into account when securing another round of the pay policy.
§ Mr. AdleyDoes the Secretary of State recall that page 1 of the February 1974 Labour Manifesto told people that the economic crisis took the form of fear for their jobs and that the Labour Party would change all that? Does he not think that his Government's performance since then has been squalid and disgraceful, and will he follow the example of his right hon. Friend?
§ Mr. FootThe two manifestos on which the Labour Party fought and won the two elections said that this country faced a major crisis of inflation, unemployment and of our general system. We are gradually carrying out some parts of what the manifestos said. Some of us would like to carry out some parts even faster, and the more encouragement we receive from the Opposition the faster, I hope, we shall go.
§ Mr. Carter-JonesWill my right hon. Friend ask the Manpower Services Commission to look at the despairing situation of people who have been subject to accidents in industry or on the roads, who have been retrained and who have extremely grave difficulty in finding jobs after retraining? Will he look at this matter again?
§ Mr. FootWe are doing our best to aid the disabled workers in this difficult situation. The Manpower Services Commission and my Department are doing what they can in that respect.