HC Deb 15 December 1977 vol 941 cc912-5
Q4. Mr. Corbett

asked the Prime Minister if he will make a statement on the European Summit meeting.

The Prime Minister

I refer my hon. Friend to the statement that I made on 7th December.

Mr. Corbett

Can my right hon. Friend say something more about the steps to be taken soon in an attempt to cut down the appallingly high levels of unemployment in all of the Community countries, especially among young people? Would he also elaborate on what he said in his reference to something more having to be done in the public employment sector? When may a start be made on that?

The Prime Minister

It so happens that the Secretary of State for Employment is in Paris today meeting his Community colleagues, who are also Ministers of labour and employment, to discuss this very question of youth unemployment. I am very glad indeed to be able to say that between September and November youth unemployment in this country fell by nearly 100,000. In September, it was 166,000. In November it was 68,000. As for public employment, I have nothing that I can add at this stage to what I said two or three days ago.

Mr. Tebbit

During the Summit meeting did the Prime Minister manage to discover from the French President why, since February 1974, prices have risen twice as much in Great Britain as they have in France, and why unemployment has risen much more than in France? When speaking to the President, did the Prime Minister take any pride in the fact that Britain is at the top, or the bottom, according to which way one looks at it, of the league—in other words, worse on prices and worse on unemployment than any other member of the Community?

The Prime Minister

I did not discuss 1974 with the President because the reason is well known—that the Conservative Administration allowed the money supply to get totally out of control. Whereas when we came into office the M3 figure—which is the index frequently used—was over 27 per cent., as the hon. Gentleman may have seen from statistics which were published at 2.30 p.m. today, it is now down to 13.4 per cent. and will keep within the 9 per cent. to 13 per cent. level. Therefore, we do not have far to seek for the reasons for inflation. The hon. Gentleman, unusually, is getting a little behind the times, because the level of inflation in this country next year is likely to be as good as that of France and may well be better.

Mr. Spearing

Did my right hon. Friend discuss with his colleagues at the Summit the new powers of the European Assembly exercised under Articles 203 and 204 of the Treaty of Rome? Has he seen the reports of the success of the Assembly in screwing more money out of the Council of Ministers in Strasbourg this week? Does not this exercise of the Assembly's powers show that there is already a federal element in it and, therefore, that direct elections would bring us into a federal structure, which my right hon. Friend denies exists?

The Prime Minister

I do not think that this long-running debate to which my hon. Friend is obsessively attached will ever be settled by question and answer in the House of Commons. My general conclusion, in answer to his supplementary question, is to say "No, Sir."

Mr. Peter Walker

Is the Prime Minister aware that while youth unemployment as a whole, under this Government, has doubled, the unemployment of young West Indians has increased sixfold? When is he going to do something to tackle that problem?

The Prime Minister

The right hon. Gentleman is right to focus public attention on these matters, which are of great concern and to which we should all direct our attention. The West Indians concerned are mostly in areas in which it is more difficult to get jobs, and the Secretary of State for Employment has been making special inquiries and seeking to undertake special action. I thank the right hon. Gentleman for the attention that he directs to this problem.

Mr. Fernyhough

Reverting to the supplementary question by the hon. Member for Chingford (Mr. Tebbit), can my right hon. Friend explain why, if what the hon. Gentleman says is true—that French prices are so much lower than ours—boatloads of French people come to this country every weekend to buy goods and stores?

The Prime Minister

It was certainly true during the past 12 months, but I have a feeling that it will not be true next year, because the level of inflation in this country is likely to be level with that of France, give or take a point or two.