HC Deb 27 July 1977 vol 936 cc628-30
19. Mr. Michael Latham

asked the Secretary of State for the Environment when he now expects to meet representatives of the construction industry and allied professions, following their meeting with the Prime Minister and himself on 16th June at which it was agreed that further discussions should take place with himself; and what specific action has ensued since that meeting.

Mr. Shore

I met representatives of the construction industry on 22nd July. Further measures to assist the industry were announced by my right hon. Friend the Chancellor of the Exchequer on 15th July, and we shall continue to do all we can to help the industry.

Mr. Latham

Will the right hon. Gentleman confirm the findings of the builders' federation this week that 74 per cent. of construction firms are working at three-quarters capacity or less, that the position is likely to continue for the rest of this year, and that the level of construction unemployment is quite outrageous?

Mr. Shore

I accept that the levels of unemployment are intolerably high. As for the other matters in the survey, I should obviously want to look at it in detail. However, the problems of the industry are very great. In the course of this year we have done our best to mitigate those problems. We have increased construction expenditure by about £230 million since the beginning of the year. I believe that while difficulties in this area are very grave there is some better prospect for next year.

Mr. Frank Allaun

Are not the restorations to which my right hon. Friend has just referred very small in comparison with the cuts? Does he agree that they go nowhere near restoring the situation? Will he therefore support the TUC, the Labour Party and one or two representatives of the construction industry and reverse the cuts, in view of the 1.6 million unemployed and the colossal tragedy of housing shortages?

Mr. Shore

My hon. Friend knows that all on the Government side of the House are in favour of restoring public expenditure levels as they affect the construction industry as soon as the financial and economic situation allows.

Mr. Tebbit

When the right hon. Gentleman says that the level of unemployment is intolerable, may we take it that he means that if it does not rapidly go down he will leave his office to show that he cannot tolerate it? Alternatively, will he tolerate it and stay in office?

Mr. Shore

The hon. Member for Melton (Mr. Latham) used the word "outrageous" and I agreed that the situation was intolerable. Unlike the Opposition, who are in favour of increasing public expenditure cuts, we are doing our utmost to help the construction industry in every way we can.

Mr. Skinner

Does my right hon. Friend agree that none of these forward-looking reviews and in-depth studies will solve the problem? The Secretary of State cannot, like some of his colleagues on the Front Bench, blame the weather and the Continentals. Does he agree that there is a simple equation? There are 800 million bricks, 250,000 construction workers on the dole, and thousands of homeless needing roofs. Any economist should be able to solve that equation.

Mr. Shore

I am always happy to have my own resolve fortified by my hon. Friend the Member for Bolsover (Mr. Skinner). What he leaves out of the equation, as he puts it, is the whole problem of public expenditure, with which we also have to deal.

Mr. Skinner

The IMF. The Common Market.

Mr. Costain

I do not wish to interrupt the private conversation between the Secretary of State and his hon. Friend, but is the right hon. Gentleman aware that he could help overcome unemployment in the building industry if he were not so complacent about the supply of land? Does he agree that that would be the quickest way of helping unemployment and that it would not require any extra expenditure by the Government?

Mr. Shore

We have answered that question. We have examined the evidence and we are not aware that this is a serious problem at present. However, we shall continue to monitor the situation. Of course, we shall take what action we can should that apprehension show any signs of turning into reality.