Unemployment Levels (Hansard, 1 February 1977)

§ 6. Mr. Peter Bottomley
asked the Secretary of State for Employment by what numbers the Government's special measures have reduced unemployment.

§ 7. Sir W. Elliott
asked the Secretary of State for Employment by what numbers the Government's special measures have reduced unemployment.

§ 8. Mr. Anthony Grant
asked the Secretary of State for Employment by what numbers the Government's special measures have reduced unemployment.

§ Mr. Booth
With permission, I shall answer Questions 6, 7 and 8 together.

§ Mr. Mellish
On a point of order, Mr. Speaker. You will find that the three Questions that are to be taken together 216 are in completely similar form and that there are a further three Questions that contain exactly the same wording. Is it not an abuse of Question Time when six Questions are tabled in exactly the same words?

§ Mr. Speaker
We usually take points of order after Question Time.

§ Mr. Mellish
Then I shall raise the matter then.

§ Mr. Speaker
I would add that I cannot interpret the moving of the spirit among hon. Members.

§ Mr. Mellish
It is a fiddle.

§ Mr. Booth
At present the Government's special measures are supporting over 220,000 jobs or training places, and unemployment would be higher by that number but for the measures.

§ Mr. Bottomley
Will the Minister confirm in rather clearer language the fact that after two and a half years of Socialist Government unemployment has risen from 700,000 to 1,700,000? What action does he intend to take—other than to resign?

§ Mr. Booth
The rise in unemployment to which the hon. Gentleman refers caused us to introduce measures that have provided 220,000 jobs and training places. These measures will have to be developed, and are being re-examined so that we may meet the challenge posed by this serious problem. We shall seek to resolve these problems in more constructive ways than the methods indicated in the Opposition's criticism. We shall continue in office and seek to solve the problem.

§ Sir W. Elliott
Does the Minister accept that many of us agreed with his earlier comments about the shortage of skilled workers, particularly in city areas? Does he think that some of the immense sums now being used to create short-term and almost false employment would be much better used to help the small businesses that are being severely hit in urban areas?

§ Mr. Booth
I accept that there is a special problem in relating training to skilled shortages, but the situation sometimes cannot be foreseen. That is why we have included many special measures 217 of support for apprenticeships in industry. We have sustained about 45,000 apprenticeships and have maintained the level of skill training as a normal incidence of activity throughout the period of recession. We are also developing, through our Training Opportunities Scheme, a further 80,000 training places per year. That is a measure of the importance that we attach to the problem.

§ Mr. Grant
How does the Minister explain the sizeable number of unfilled jobs in deprived city and urban areas despite the high unemployment figures recorded in those areas? Does that not illustrate a crazy system, and are not the right hon. Gentleman's special measures ineffective to deal with the problem in an urban sense?

§ Mr. Booth
If I were to answer that supplementary question fully, I should require an hour-long speech to do so. There are myriad reasons for so many unfilled vacancies, and a governmental committee is now examining the special problems of urban areas. Among the reasons are the wages paid for some of the jobs that are vacant and transport problems involving travel to some of the jobs that are unfilled. The problem also embraces special skill requirements in certain jobs and the fact that jobs sometimes occur in areas that are a long way from those places where unemployment is highest. In my constituency there are vacancies for 200 skilled men, and even with the aid of our employment transfer subsidy scheme we shall have difficulty in filling those vacancies. There are a vast number of reasons for the present situation. The problem will continue to be given priority.

§ Mr. Noble
Is my right hon. Friend aware that if it had not been for the temporary employment subsidy, a large proportion of the textile and footwear industries in the North-West would have disappeared? Is he also aware that the unions in that area are concerned about the continuation of the subsidy? When will he make a statement to the effect that the subsidy will continue beyond the present termination day?

§ Mr. Booth
I am aware of the vast number of jobs that now depend on the payment of the temporary employment subsidy, and of the concern of the unions. 218 For these reasons I used part of the additional money allocated following the statement by the Chancellor of the Exchequer, concerning the arrangements with the IMF, to continue the temporary employment subsidy scheme until April. Between now and then we are examining that scheme and others to determine whether they should be continued or whether alternative measures are needed to deal with the problem.

§ Mr. Madel
Does not the Minister agree that many of the jobs created do not include a real element of training, especially those provided by local authorities? What is the Manpower Services Commission doing to improve the training element in those new jobs?

§ Mr. Booth
The work experience scheme is specifically related to training and the Manpower Services Commission examines the training requirements of every scheme. Over a period of time the job creation scheme in respect of training has gradually been improved and many of the better schemes now contain a very good training element. The fact that the MSC approves schemes usually reflects the need for youth employment in an area. We prefer schemes containing a higher training element to be sponsored.

§ Mr. Hardy
Is my right hon. Friend aware that many who have benefited from the Government's special measures will note the persistent demands by the Opposition for further savage cuts in public expenditure? Will he estimate the numbers that will have to be added to dole queues before those hon. Gentlemen are satisfied?

§ Mr. Booth
It is beyond my capabilities to judge what would satisfy the Opposition in terms of public expenditure cuts, or where they would draw the limits. I know that they would draw the line in a different place from that indicated by my hon. Friends in the recent defence debate. I believe that the measures introduced by my Department should receive overwhelming support in all parts of the House, since they will have benefits in regions where this would not otherwise be possible and will sustain employment much more effectively than with other forms of public expenditure.