Job Creation (Hansard, 14 June 1977)

§ 6. Mr. Peter Bottomley
asked the Secretary of State for Employment if he will make a statement on the job creation programme; how much money has been allocated to it so far; and to what extent it has helped reduce unemployment amongst young people in urban areas.

§ The Under-Secretary of State for Employment (Mr. John Golding)
I am informed by the Manpower Services Commission that a total of £130 million has been allocated to the job creation programme, which is due to end on 31st March 1978. Up to 19th May 1977, grants totalling £114 million had been allocated to 8,201 projects creating 80,038 jobs. The majority of these are in urban areas. About 45 per cent. of all jobs created are filled by 16 to 18-year-olds and about 75 per cent. by those in the age group 16 to 24.

§ Mr. Bottomley
In addition to or in substitution for the costly and temporary job creation programme, will the Minister accept the Opposition's imaginative idea of getting young people involved in neighbourhood and community work? Does he agree that such a scheme would cost less and involve more people?

§ Mr. Golding
The Government are at present considering proposals that have come from the Holland Committee's report which are endorsed by the Manpower Services Commission and have received support from the CBI, the TUC, the education services and local authorities.

§ Mr. Park
What will follow when the job creation project finishes? What will happen after that?

§ Mr. Golding
I am afraid that my hon. Friend will have to wait a little while for us to announce our decision about that. We are expecting shortly to make a statement on the Government's view of the Manpower Services Commission's proposals.

§ Mr. Donald Stewart
Is the Minister aware that, although it is not regarded as a solution or a substitute for permanent employment, the job creation programme has been welcomed in my community as a contribution towards reducing unemployment? It also provides some amenities and facilities that have been missing for a long time. What will happen after the date when the schemes are due to end in constituencies such as mine, which consistently has had the highest unemployment figures in the United Kingdom?

§ Mr. Golding
The right hon. Member must be patient for a few weeks. The Government will announce their decision as soon as possible. I, too, have been enthusiastic about the success of the job creation programme. I have supported the work that has been done among young people.

§ 19. Mr. MacGregor
asked the Secretary of State for Employment what is the total expenditure to date on the job creation scheme; and how many jobs have been created; and, of these, what percentage have been translated into permanent employment.

§ Mr. Golding
I am informed by the Manpower Services Commission that up to 19th May grants totalling £114 million had been allocated to 8,201 projects approved under the job creation programme, creating 80,038 jobs. No JCP jobs have been translated into permanent employment. The programme is intended to provide temporary jobs, and employment on JCP projects is subject to a maximum of 52 weeks, with the exception, in some cases, of project supervisors. A small number of workshop enterprises which may lead to permanent employment opportunities are also currently being funded by JCP.

§ Mr. MacGregor
As unemployment among young people is not likely to be a temporary problem, is not that one of the real weaknesses of the job creation programme? Would it not be better to concentrate rather more of the vast sums involved on programmes which offer long-term training and work experience, concentrating more effort on removing from firms, especially small businesses, some of the obstacles which are now discouraging them from taking on new employees?

§ Mr. Golding
All these matters are under consideration by the Government in the light of their consideration of the proposals contained in the Holland Report.

§ Mr. Stan Crowther
Does my hon. Friend agree that in the long term technological advance means that there will be no overall increase in the number of jobs and that, in fact, there will be a reduction as the years go by? Does he accept that the only solution is to reduce the retirement age?

§ Mr. Golding
I believe that technical innovation can increase the number of jobs available. That is certainly so in the service sector. That will enable us to pay for them as well as to diminish them.

§ Mr. Prior
Why do the Government take so long to make up their minds? The problem has been with us for three years and yet the Government have not put forward any positive long-term scheme to deal with the problem, as was pointed out by the hon. Member for Coventry, North-East (Mr. Park). Why do not the Government get on with the job instead of talking about it?

§ Mr. Golding
Because the Government believe that it is important that we discuss the recommendations of the Manpower Services Commission with as many people as possible. We believe that it is important to carry the CBI and the TUC with us in any proposals in respect of youth unemployment.