HC Deb 28 November 1978 vol 959 cc196-9
5. Mr. Skinner

asked the Secretary of State for Employment what further measures he has in mind for reducing unemployment; and if he will make a statement.

15. Mr. Wyn Roberts

asked the Secretary of State for Employment what further steps he will take to reduce unemployment.

The Secretary of State for Employment (Mr. Albert Booth)

I have already announced an extension of the small firms employment subsidy from 1st January 1979 and it is the intention of the Government to introduce a short time working compensation scheme. The need for further measures will be kept under review.

Mr. Skinner

Is my right hon. Friend aware that every time he initiates a new temporary job scheme big business, aided and abetted by some of his Cabinet colleagues, introduces permanent sackings, for example, KME? We have seen the movement in the minimum lending rate, and we now have the dispute at Times Newspapers Ltd. Is my right hon. Friend aware that the millionaire owners of Times Newspapers Ltd. are in the throes of putting 4,000 more people on the stones? Why does not he tell them to lift the deadline and start renegotiations?

Mr. Booth

I am only too deeply aware of the many redundancies that are introduced by employers, for a whole range of reasons. Some of the measures that we have introduced, including the temporary employment subsidy, give us a basis for discussion with employers and enable us to fend off and avoid a certain number of redundancies. By means of the Employment Protection Act we have given unions a status and a right to consultation. I agree that what we are doing by introducing special measures is largely offset on many occasions by massive redundancies.

Mr. Roberts

Does the right hon. Gentleman agree with the Government Actuary's assessment that in the next financial year the average number of jobless will be greater than the number of jobless in the present financial year?

Mr. Booth

The figures to which the hon. Gentleman refers are not estimates by the Government Actuary but are figures that were used and produced in a report that was laid before the House last week, along with the national insurance order. They are working assumptions. That was made clear. The Government Actuary draws his figures, for the purpose of working assumptions, from the Treasury. The report said that for the purpose of illustration certain levels of unemployment had been used as working assumptions. The report quoted figures which it said were being used for that purpose in the financial years 1978–79 and 1979–80. I do not regard them as forecasts of unemployment for those years.

Mr. Watkinson

Has my right hon. Friend's Department further considered the question of early retirement? Is he able to say how successful the job release scheme has been and whether the new terms of the scheme have brought a significant number of persons into the scheme and thus increased job opportunities for the community?

Mr. Booth

It is too early to make any accurate estimate of the effect of the changed terms of the scheme. On 7th November about 17,000 people were benefiting from the job release scheme. I hope to see that number expanded greatly in the forthcoming months.

Mr. Emery

What new thinking has the right hon. Gentleman had for pockets of unemployment in areas which have no assisted or development status, such as East Devon where there is a level of unemployment of 10 per cent.? Job creation in these small pockets throughout the country is terribly important, but that matter seems to be getting next to no thought from the right hon. Gentleman's Department.

Mr. Booth

A lot of consideration has been given to a number of pockets of unemployment which are outwith assisted areas and inner city partnerships. That is why a number of schemes run by my Department are now placed on a nationwide footing; for example, the small business employment subsidy and the job release scheme.

Mr. Ashley

When considering measures to reduce unemployment, will my right hon. Friend bear in mind that more than 63 per cent. of employers are failing to employ their 3 per cent. quota of registered disabled workers? Is my right hon. Friend aware that, with two exceptions, every major Government Department is failing to employ its 3 per cent. quota? Is it not time that sanctions were imposed on Government Departments and on private employers?

Mr. Booth

I have recently been engaged in discussions with the Civil Service Department and the Manpower Services Commission about methods by which the Government might improve their performance in the employment of disabled persons. Taking the wider, national scene, we are still trying to bring about a considerable improvement in the employment of registered disabled people through the job induction scheme and special grants for adaptation of employers' premises.

Mr. Prior

Can the right hon. Gentleman give an estimate of the number of additional jobs that are being lost each month as a result of the increase in the minimum lending rate by 2f per cent.? Is he aware that the unemployment figures are still extremely serious? What is the difference between a working assumption and an estimate, about which he has been talking this afternoon?

Mr. Booth

I cannot give an estimate of the effect upon employment of the change in minimum lending rate. The change was addressed broadly to the problem of containing and reducing the inflation rate. I trust that the right hon. Gentleman would agree reducing the inflation rate can only be beneficial to employment prospects.