HC Deb 16 March 1976 vol 907 cc1104-5
2. Mr. Wyn Roberts

asked the Secretary of State for Employment what proposals he has for the relief of unemployment in Wales.

The Secretary of State for Employment (Mr. Michael Foot)

Of course, I recognise that the unemployment situation is extremely serious, but Wales has already benefited and will continue to benefit from the series of selective manpower measures announced since the autumn, which are designed to mitigate the worst effects of unemployment. One hundred and sixty projects have been approved under the Job Creation Programme, providing a total of 1,539 jobs, the temporary employment subsidy has saved 1,718 jobs, and applications in respect of 1,751 school leavers have been approved under the Recruitment Subsidy Scheme for school leavers. In addition, the whole of Wales has assisted area status.

Mr. Roberts

I appreciate the Government's efforts, but is the Secretary of State aware that the 25 per cent. rate of VAT on domestic electrical appliances is causing redundancies and unemployment? Is he aware of the situation at the Hotpoint factory in my constituency, and the Hoover factory in Merthyr, where there have been delays in the creation of about 3,000 jobs because of this VAT rate?

Mr. Foot

I am fully aware of the situation at the Hotpoint factory and even more so of that at the Hoover factory in Merthyr. My hon. Friends the Member for Merthyr Tydfil (Mr. Rowlands) and hon. Friends from other parts of Wales have made representations to the Chancellor of the Exchequer which I am sure he will take into account. I hope that the hon. Member for Conway (Mr. Roberts) will consider some of the other factors at Hotpoint as well.

Mr. Henderson

Bearing in mind the news we have heard today, can the Secretary of State say what prospects there are for employment in Wales or elsewhere for people aged 60 or over, with rather limited experience?

Mr. Foot

This is a very sensitive subject. Opportunities are always opening at the most extraordinary moments, but I do not think the hon. Member should count his chickens before they are finally dead.

8. Sir A. Meyer

asked the Secretary of State for Employment what was the total number of additional redundancies in North Wales at 1st March 1976.

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

I am informed by the Manpower Services Commission that, as at 1st March, redundancies affecting about 780 people had been recorded as due to occur in North Wales at a subsequent date.

Sir A. Meyer

Is the Minister aware that with the recently announced redundancies at Courtaulds and at ITT in Rhyl a catastrophic situation is rapidly sliding out of control? Is he further aware that the Government's job creation programme is like trying to stop a tank with a pea-shooter? Will the Minister do something about unemployment and see that the whole area is given development area status?

Mr. Fraser

I recognise the problem of the redundancies at Courtaulds, which were announced on 27th February, whereby about 600 employees will be made redundant. All the services of my Department and of the Manpower Services Commission will be made available. Under the job creation programme and other employment measures about 1,400 jobs have so far been saved or created in North Wales. That is a useful contribution to what I agree is a difficult problem. The question of development area status is a matter for my right hon. Friend the Secretary of State for Industry.