Construction Industry (Hansard, 16 November 1976)

§ 3. Mr. Michael Latham
asked the Secretary of State for Employment what is the present level of unemployment in the construction industry; and what was the equivalent figure for 1st March 1974.

§ Mr. Golding
At 12th August, the latest date for which an industrial analysis is available, 193,818 people who last worked in the construction industry were registered as unemployed in Great Britain. The figure at March 1974 was 113,046.

§ Mr. Latham
Have not those atrocious figures been made all the worse by the fact that the construction industry has taken all the strain of the cuts made so far, while indiscriminate food subsidies and other transfer payments have gobbled up all the available resources?

§ Mr. Golding
It is not true that the strain has been taken entirely by construction workers. The Government have taken many measures to bolster the situation in the construction industry. Naturally we are concerned about the unemployment situation in that industry, which is mainly due to the falling off in public works.

§ Mr. Prior
Is the Minister aware that his answer is pathetic? What effect does he estimate that the 15 per cent. minimum lending rate will have on investment and, therefore, on building jobs in the next year or so? Is it not a fact that the 15 per cent. minimum lending rate is necessary so that the Government may get their money, while the private sector is being starved of resources, with the result that there is an increase in unemployment in the private sector?

§ Mr. Golding
We do not accept the right hon. Gentleman's statement. Naturally we hope that the high interest rate will be short lived. It is apparent, however, that the greatest problem in the construction industry lies in the public works sector. This would be made immeasurably worse by the massive cuts in public expenditure proposed by the Opposition.

§ Mr. Ronald Atkins
In view of that reply, will my hon. Friend recommend an increase in public expenditure on construction work, bearing in mind that that would not hurt the balance of payments since the products used would be almost entirely British and would be used by British labour?

§ Mr. Golding
That is not entirely true because imports play a big part in the work. The level of the ceiling that the Government have had to place on public expenditure is due to the fact that they have to tackle the general problem of inflation at the same time.