§ Q2. Mr. Loydenasked the Prime Minister if he will pay an official visit to Merseyside.
§ The Prime MinisterI have at present no plans to do so.
§ Mr. LoydenIs my right hon. Friend aware that an official visit by him to Merseyside at this stage would be most welcome if only for the fact that it would provide the opportunity for him to answer the questions raised by 80,000-plus unemployed in Liverpool relating to how soon the Government's policies will be directed towards a reduction in that number? Is my right hon. Friend aware that instead of a rosy future for Merseyside there are predictions of yet further job losses, and that that is something to which the Government should pay attention?
§ The Prime MinisterI am obliged to my hon. Friend for his Question, because unemployment should be of deep concern to us all. For Merseyside, there is every reason for concern about the future situation as well as the present. I understand that discussion is going on between hon. Members and Ministers about some of the industries there, and I hope that this will continue. Basically, however, an improvement in Merseyside will come, I hope, with the upturn in the economy, which has already begun. It would be wrong to hold out false hopes of an early improvement in the unemployment situation, but if we overcome inflation through an acceptance of the TUC wage deal, and if we take other measures, I believe that Merseyside's unemployment will begin to fall.
§ Mr. Peter BottomleyWill the Prime Minister say, on a visit to Merseyside or elsewhere, whether the pay policy that gives 4½–5 per cent. to people at work will represent a transfer of resources to or away from families with children?
§ The Prime MinisterAll of the proposals lower the standard of life of the British people over the next 12 months. I hope that that factor will not be avoided by anybody, and I hope that in its approach to the situation the Conservative Party will explain what it would do as an alternative.
§ Mr. HefferIn considering the problems of Merseyside, will my right hon. Friend consider especially the problems in the construction industry there, for which the levels of unemployment are the highest in the country? Is he aware that in the past the city council has reduced the level of house building? Will he therefore ask Ministers in the appropriate Department to impose the maximum pressure to get house building moving rapidly again on Merseyside?
§ The Prime MinisterI am aware of the serious position in the construction industry. Special steps have been taken. Council house building has been increased, although to the best of my recollection private house building has been fairly stagnant. I shall look into this problem and ask my right hon. Friend the Secretary of State for the Environment to discuss the matter with me. Generally, however, an improvement in the construction industry is again likely to take place in parallel with the upturn in the economy.
§ Rear-Admiral Morgan-GilesWill the right hon. Gentleman accept my congratulations on being the first Prime Minister with the inestimable advantage of a naval training? As for the problems on Merseyside, will he look very broadly at the difficulties of the British merchant shipping industry, which frequently works from Merseyside, taking particular account of the extent to which it is being undercut by unfair competition from Soviet bloc shipping?
§ The Prime MinisterShipping is extremely important to Merseyside. I shall look into this matter, as the hon. and gallant Member invites me to do. I thank him for his congratulations. I am glad to see that he has recovered and is in good voice.
§ Mr. Kilroy-SilkApart from the 80,000 unemployed adults, who include the 14,000 unemployed construction workers, there are 3,000 unemployed school leavers on Merseyside. My right hon. Friend recently emphasised the importance of profits in solving our problems. Is he aware that when profits were high unemployment on Merseyside was high? Does he agree that we need greater public control and direction of 227 industry? What do the Government intend to do to ensure that this summer Merseyside school leavers will find jobs?
§ The Prime MinisterA number of steps have been taken through the job creation programme, the recruitment subsidy for school leavers, and the doubling of the temporary employment subsidy, all of which have helped to alleviate unemployment. I agree about the plight of the young people. The Government must pay special attention to that, so that when young people leave school they have the prospect of a job. But let us not hold out false hopes. The best return to prosperity for this country lies in an export-led upturn in production. If we can get that—and it is already beginning now, although I do not want to give the figures—[HON. MEMBERS "Why not?"]—because I want to be accurate— [Interruption.] The hon. Member for Blaby (Mr. Lawson) will find, when one day he stands at this Box as Prime Minister, that it is better to be accurate than to give figures that are not right and be challenged afterwards. There is now an increase in exports, which will continue. I would prefer the Government to do it this way than to embark upon domestic-led reflation, which would very shortly burst and ensure a return to an inflationary period, with more unemployment.