Unemployed School leavers

HC Deb 09 July 1980 vol 988 cc536-8

14. Mr. Douglas

asked the Secretary of State for Scotland if he will make a statement on the latest number of school-leavers in Scotland who are unemployed.

Mr. Younger

On 12 June there were 29,700 school leavers on the unemployment register in Scotland. This figure will decline over the next few months as most find jobs or a place in training or full-time further education. For those unable to do so the Manpower Services Commission has renewed its undertaking to provide a place on the youth opportunities programme.

Mr. Douglas

Will the Secretary of State admit that these are appalling figures and a tragic commentary on a leading industrialised nation that it should treat its young people so callously? On the youth opportunities programme, will the right hon. Gentleman acknowledge that under his Government the problem of unemployed school leavers is likely to continue, and will he indicate what the future budget of the MSC will be to cater for the demand?

Mr. Younger

I entirely share the hon. Gentleman's concern about unemployed school leavers. That is the last time in their lives for people ever to be unemployed. It is, however, the case, happily, that usually a large proportion of those school leavers who are unemployed find employment by December. I hope that, although this year will undoubtedly be more difficult than past years, most of them will get jobs by that time.

Mr. Lang

Does my right hon. Friend agree that the best hope for the young unemployed lies with the wide range of imaginative and helpful measures that the Government have introduced for small businesses? Such businesses already account for 60 per cent. of employment in Scotland. At times of recovery such as we shall approach once we have got rid of the Socialist inflation that we inherited these businessses will expand at three times the rate of the last few years?

Mr. Younger

It is clear that the policies followed by the Labour Government led to continuing and increasing unemployment in the long term. The Government's object is to make the necessary and difficult changes to ensure that businesses become more competitive, that more businesses are created, and that therefore jobs will increase.

Mr. James Hamilton

Will the Secretary of State concede that the forecasts are that some school leavers will be very fortunate to receive their first job within 18 months of leaving school? Will he reconsider Government policy on increasing to 64 the voluntary retirement age set by the last Government at 62? Will he say categorically whether there will be an increase or a decrease in unemployment by the end of this year?

Mr. Younger

The best reassurance for all those who face unemployment—whether they are the young or the not so young—is for everyone in employment to direct all their attention towards making sure that their companies or firms produce the right goods at the right time for the right customer. If that is done unemployment can be reduced.

Mr. John MacKay

Is my right hon. Friend aware that a small but significant number of young people always found healthy outdoor jobs in the Forestry Commission and the forestry extraction industry—both in the public and the private sectors—and that this has been threatened by the problem at the Fort William pulp mill? Has my right hon. Friend anything to say to the timber industry which might give it hope for expansion?

Mr. Younger

I agree with my hon. Friend about the importance of the industry in many parts of the Highlands. My hon. Friend may have been as glad as I was to hear the announcement this morning by the Highlands and Islands Development Board of a £4.5 million new investment in a modern timber producing plant at Kilmallie near Fort William. The project will receive investment assistance from the SDA amounting to £325,000 in the form of a preference shareholding, and financial assistance from the board. It will safeguard existing jobs and create new ones, involving 200 jobs in all.

Mr. Millan

We are delighted to hear that announcement, which is a clear demonstration of how public money can create and stimulate employment in Scotland.

Mr. Younger

I am grateful to the right hon. Gentleman for his welcome for the new development. It is a perfect example of how public money which is scarce can be used selectively to help a worthwhile new project.