Unemployment

HC Deb 31 January 1978 vol 943 cc232-4

9. Mr. Goodlad

asked the Secretary of State for Employment what new proposals he has for reducing unemployment.

26. Mr. Stoddart

asked the Secretary of State for Employment what new measures he intends to propose to alleviate unemployment.

Mr. Booth

I would refer the hon. Members to the speech I gave in the House yesterday, and in particular to the references concerning the small firms employment subsidy, the temporary employment subsidy and the job release scheme.

Mr. Goodlad

Will the Secretary of State accept that most of the measures to which he referred have a short-term effect and that, important though they may be, they do nothing towards solving the long-term problem of productivity? In view of the survey of 82 manufacturing industries that the right hon. Gentleman mentioned in his speech yesterday, which showed that the 10 industries with the fastest growing productivity increased employment by 165,000, compared with a fall of 600,000 in the 82 as a whole, does he agree that productivity is the friend rather than the enemy of employment and that it should be assisted rather than obstructed by Government policy?

Mr. Booth

I entirely agree with one proposition only that the hon. Gentleman put, namely, that productivity is the friend of employment. I disagree with virtually everything else he said. I believe that the small firms employment subsidy scheme can considerably help to increase employment opportunities and raise productivity in small firms. I also believe that the temporary employment subsidy can enable firms to restructure in a way that improves their productivity and their chances of maintaining employment. I believe that the job release scheme, by enabling older employees to leave and younger employees to come into their places, can also help productivity. Even where it does not help, it certainly cannot be contended that it in any way hinders productivity.

Mr. Speaker

It seems that the House has forgotten how to ask a brief question and how to get a brief reply. That means that hon. Members who thought that they would be called to ask a Question will not be called.

Mr. Stoddart

Is my right hon. Friend aware that deep-seated and long-term unemployment will not be solved in manufacturing industry alone but will need social action as well? Is he aware that if we reduced the retirement age for men to 64 there would be potentially another 250,000 jobs for young people? Will not the Government—[HON. MEMBERS: "Too long."]—now take immediate action on this matter?

Mr. Speaker

The hon. Gentleman could not have heard what I said. He has asked three questions instead of one.

Mr. Booth

The last two of my hon. Friend's three questions are really for my right hon. Friend the Secretary of State for Social Services. The answer to the one that falls directly to me is that I certainly believe that my Department is aiding by the extension of the job release scheme that I announced yesterday. I hope that my hon. Friend will join me in persuading people to make the maximum use of it.

Mr. Budgen

Will the right hon. Gentleman kindly answer the question put to him by my hon. Friend the Member for Aylesbury (Mr. Raison)—namely, how much extra employment would be created if the money spent on job sub- sidy were diverted to conventional methods of increasing public expenditure? Secondly—[HON. MEMBERS: "Order."]—will he say how much extra—

Mr. Speaker

Order. Hon. Members must play the game or we shall never reach Question No. 15.

Mr. Booth

The answer is "None Sir".

Mr. Hoyle

Does my right hon. Friend agree that, despite the invaluable help given by the TES, unemployment is still increasing in the textile industry, and that what is needed is more purchasing power, which must mean a return to free collective bargaining?

Mr. Skinner

That is a bit better.

Mr. Booth

I cannot agree with my hon. Friend if he implies that increases in wages without regard to their true purchasing effect are a solution. We must have an increase in real purchasing power, I agree, but that will depend on a permanent relationship between increases in wages and increases in prices.

Mr. Penhaligon

Why did not the right hon. Gentleman's proposals include an effort to reduce the amount of overtime being worked?

Mr. Booth

The amount of overtime worked is principally a matter for negotiation between employers and unions, but I would certainly urge those considering any arrangements which would enable them to reduce overtime and increase employment to give this a maximum priority.