HC Deb 26 January 1977 vol 924 cc1469-71
3. Mr. Monro

asked the Secretary of State for Scotland what consultations he has had over the past six weeks with the CBI and TUC relating to the level of unemployment in Scotland.

11. Mr. Canavan

asked the Secretary of State for Scotland when he next plans to meet the STUC.

Mr. Millan

With my right hon. Friend the Prime Minister and other colleagues I met the STUC on 8th and 9th December. I have at present no plans for a further meeting.

The CBI has not recently approached me for similar discussions.

Mr. Monro

Are not the post-war record unemployment figures a devastating condemnation of the Labour Government's policy? Will the Secretary of State tell us just how many new jobs—and I emphasise "new jobs"—the Scottish Development Agency has provided in the past 12 months?

Mr. Millan

On the general question, I would simply say that it is absolute humbug for Opposition Members, who have been calling for massive cuts in public expenditure and who voted against the Chrysler operation, now to shed crocodile tears about the level of unemployment in Scotland. If they can demonstrate to me and to the House how the savage cuts in public expenditure and the other measures that they have advocated would help to save employment in Scotland, I shall be ready to listen to them with some respect. But at the moment I am not.

Mr. Robert Hughes

Bearing in mind my right hon. Friend's view that the withdrawal of the REP will have an effect on unemployment, will he also take into account the fact that the decision to withdraw it on 2nd January was published only in a Written Answer and was not notified to the firms until very close to 12th January, the last date for which they are allowed to claim in arrear? Will he undertake to convey to the Treasury that payment of late claims should be sympathetically considered, since this will affect very seriously the prospects of families in my constituency?

Mr. Millan

I shall certainly look at that, but I think that it has been the general practice in any case for the REP to be paid a little later than the actual period to which my hon. Friend refers. We expect in the normal course of events to be paying the premium until the end of March. I shall certainly consider my hon. Friend's point.

Mr. Henderson

In the absence of the hon. Member for West Stirlingshire (Mr. Canavan), will the right hon. Gentleman deal with the question of the timetable also, which is raised by my Question No. 32 referring to discussions with the STUC? What explanation will he give to the STUC for the rise in unemployment to 183,000 in Scotland?

Mr. Millan

I have had numerous meetings with the STUC, and the Under-Secretary met it only last Friday. I think that it understands the Government's position on this matter very well.

Mr. Buchan

When he met the STUC did my right hon. Friend raise the question of the heavy electrical engineering industry in Scotland? Is he aware of the immediate crisis that we are facing, for example, in Babcock and Wilcox, and will he press, as a matter of extreme urgency, for the immediate ordering of the Drax B project and for at least one other power station to be phased forward?

Mr. Millan

I recognise the urgency of the point that my hon. Friend has made. It was one of the matters discussed with the STUC at the December meeting. We are certainly hoping to be able to make an announcement on the future of the power plant industry very soon now.

Mr. Younger

The Secretary of State cannot shrug off his responsibility for the disastrous unemployment figures. Is he not aware that every economic commentator has agreed that if the right hon. Gentleman had made smaller cuts in public expenditure two years ago than he is being faced with today we should not be in this position? Is he asking the House to believe that the Government's adverse measures on industry—high interest rates, national insurance levy, increased taxation and the other increased burdens that have been put on every business in Scotland—have had no effect in producing this disastrous level of unemployment?

Mr. Millan

The hon. Gentleman must acknowledge that measures of the kind which the Opposition are advocating to the Government, such as the reductions in public expenditure, are bound to have an absolutely disastrous effect on unemployment in Scotland. With regard to the general economic situation, there has been a considerable improvement in the position of the pound over recent weeks. We have been able to reduce the minimum lending rate from the peak of 15 per cent. to 13¼ per cent. We are expecting investment in manufacturing to increase, and there are increasing signs of a growth in business confidence, as I know from many meetings with industry in Scotland.

Mr. Monro

In view of the incredibly incompetent reply to my Question, I beg to give notice that I shall seek to raise the matter on the Adjournment.