§ 1. Mr. Flanneryasked the Secretary of State for Employment if he will give the latest unemployment figures; and if he will make a statement.
§ The Secretary of State for Employment (Mr. Albert Booth)At 8 February, the provisional number of people registered as unemployed in Great Britain was 1,387,761. These figures are far too high. In order to reduce unemployment we have been reviewing our programme on special measures for 1979–80 and have reached decisions on some of the schemes. The Manpower Services Commission's youth opportunities programme will be expanded from 80,000 to 100,000—120,000 filled places, the community industry scheme for unemployed young people from 5,500 to 7,000 filled places and the specal temporary employment programme for the long-term unemployed from 25,000 to 30,000–35,000 filled places. We intend, subject to consultation with the TUC and CBI and the approval of the House, to replace the temporary employment subsidy, which closes for applications on 31 March, with a national scheme under the Employment Subsidies Act to support short-time working as an alternative to redundancies, which will operate until the proposed new statutory scheme is introduced. We also propose to introduce as soon as possible for the private sector an additional scheme under which a labour subsidy related to wage levels could be made available in some restructuring situations where the object is to preserve jobs which would otherwise dis 226 appear. The job release scheme will continue in the year from 1 April.
§ Mr. SpeakerOrder. I was informed that the answer was likely to be long. I hope that answers will be shorter on other questions.
§ Mr. FlanneryWill my right hon. Friend accept that I am grateful for his statement, which was one-third of the length of some questions from the Conservative Benches? Will be also accept that there is a profound disagreement among a large section of Labour Members on our general policy on employment? Will be further accept that due to the Common Market dumping policy on special steels, there is a grave danger of many thousands of workers becoming unemployed? Will be discuss that with the Secretaries of State for Trade and Industry? It is killing massive trades all over the country, and especially the special steels industry in Sheffield.
§ Mr. SpeakerOrder. I do not doubt the importance of the question, but if all questions are like that we shall not reach question No. 5.
§ Mr. BoothI accept that there are differences among Labour Members over policies that affect employment. Fortunately, these do not include the special employment measures. I hope that the extensions that I have announced will be welcomed in the House as a whole. I shall continue discussions with my right hon. Friends the Secretaries of State for Trade and Industry to ensure that the policies that they are developing take full account of the consequences on employment.
§ Mrs. Kellett-BowmanIs the Secretary of State aware of the serious and deteriorating position of gross domestic fixed capital formation in the Northwest? In 1971 it was above the national average. It is now well below it. What steps did the Secretary of State take before setting up the important Inmos project in the North-West instead of Bristol, where it was not required?
§ Mr. BoothThe location of Inmos in Bristol affects only the pilot plant and development activities, and not manufacturing. All the development areas will 227 have a high claim when considering where the products will be manufactured.
We are seeking to redress the capital formation in the North-West to some extent by industrial aid. For smaller firms, we are seeking to do this by small firm employment subsidy assistance.
§ Mr. LoydenWill my right hon. Friend accept that the figures that he has given this afternoon cause deep concern to hon. Members on the Government Benches and that we remain dissatisfied with the Government's progress? Will be accept also that the alternatives of short-term employment and training for jobs that are not there are unsatisfactory? Is it not time that an entirely different strategy was employed to overcome unemployment?
§ Mr. BoothThe emphasis of special measures has changed very much from propping up temporary jobs to providing support for job expansion. I cannot agree that we are training people for jobs that are not there. One of the things that amazes me about the present recession is that at a time when more than 1 million people are unemployed there are still a considerable number of vacancies for skilled workers.
§ Mr. PriorIs the Secretary of State aware that it might have been convenient to the House if he had made his statement at the end of Question Time so that we could have questioned him more fully on his important announcement? Is he aware that it now the fifth anniversary—almost exactly—of the February 1974 election, which was fought on the basis of "Back to Work with Labour"? The number of unemployed was 800,000 fewer at that time than it is now. Is not the present figure of unemployed an absolute disgrace to the Labour Party, and does it not show the failure of Labour's economic policies over the whole five-year period?
§ Mr. BoothNo, I do not accept that at all. The level of unemployment reflects, in part, international economic difficulties. Within the framework of employment policies which are within the control of the Government, it is significant that we have found it possible to develop many more jobs than were developed under the previous Government.