HC Deb 13 October 1976 vol 917 cc408-10
5. Lord James Douglas-Hamilton

asked the Secretary of State for Scotland if he will make a statement on the most recent state of unemployment in Scotland.

Mr. Millan

Although there was a welcome fall of 8,700 in total unemployment in Scotland between August and September, the current level remains a matter of serious concern to the Government. Our regional and economic policies are directed towards curing the underlying causes of unemployment.

Lord James Douglas-Hamilton

Does the right hon. Gentleman accept that the Labour Party has become the natural party of massive unemployment as a direct consequence of its policies? Will not the vicious increase in interest rates produce a further decrease in the confidence of British industry and probably lead to even worse unemployment figures in future?

Mr. Millan

I cannot accept any of the hon. Gentleman's assertions. I do not believe that the recent increase in interest rates will have the serious effect on unemployment that some hon. Members suggest.

Mr. Thorne

Does my right hon. Friend agree that when the Scottish Assembly is elected it will be much more effective in dealing with unemployment if it is given more economic power than is proposed in the dissolution Bill?

Mr. Millan

It is the devolution Bill, not the dissolution Bill, and it has not been published yet. We believe that the proposals already outlined for control of the Scottish Development Agency, for example, give an effective balance between the genuine powers of the Assembly and the maintenance of the economic unity of the United Kingdom.

Mrs. Bain

Will the right hon. Gentleman undertake to ascertain how many youngsters have gone back to school because no jobs were available for them? How many jobs does he expect to be available for youngsters leaving school at Christmas?

Mr. Millan

There was a substantial reduction in youth unemployment in the latest figures. I cannot give the information for which the hon. Lady asks in the first part of her question. It is a matter not only of those who go back to school but also of those who decide to stay on after the leaving date. This is sometimes a desirable development and I do not consider it necessarily to be an adverse feature of the situation. It is the Government's intention to make jobs available for young people who want to leave school. They have the right to expect that employment will be available for them.

Dr. M. S. Miller

What action does my right hon. Friend intend to take to ensure that multinational companies such as STC respect their obligations to the British taxpayer, since this is one of the causes of unemployment in Scotland? Does he intend to pursue the efforts which some of us are making to get Rolls-Royce to review its policy in Scotland, particularly in the East Kilbride constituency?

Mr. Millan

On my hon. Friend's second point, he will be aware of the letter sent out by my right hon. Friend the Secretary of State for Industry the other day. My hon. Friend was also at a meeting with the Secretary of State and therefore knows the overall prospects of Rolls-Royce, not only for this year but for next year and a little further forward as well. He also knows the context in which the decision on Blantyre was taken. On my hon. Friend's first question, my experience is that multinational companies are no worse, if no better, than other companies in dealing with redundancies. I do not think that the problems in Scotland can be attributed to multinational companies or to any other source of employment in Scotland.

Mr. Buchanan-Smith

Can the right hon. Gentleman elaborate on his earlier assertion that the increased interest rates, coupled with an increased payroll tax through national insurance contributions, will have no effect on unemployment in Scotland? Is he really so out of touch with the economy of Scotland and the economy of business there that he believes this? When will he face the fact that it is as a result of his Government's policies since 1974 that we have such long jobless queues? He is living in the same cloud-cuckoo land as the Chancellor of the Exchequer.

Mr. Millan

I did not say that the increased interest rates would have no effect on investment intentions. It would be absurd to claim that. I said that they would not have the serious effects which some hon. Members opposite have claimed. The July survey of industrial trends by the Scottish CBI confirmed the upward trends first indicated in January and April this year. Taken as a whole, Scottish industry now has much more confidence in the future than for a long time, and this is confirmed at my meetings with industrialists.