§ 1. Mr. Dormandasked the Secretary of State for Employment when he expects the number of unemployed people to decline.
§ The Secretary of State for Employment (Mr. James Prior)Given the world situation and the uncompetitive state of parts of British industry, unemployment is bound to rise over the next few months. I cannot usefully forecast when it will fall.
§ Mr. DormandI thought that the Secretary of State might make reference to the timely drop in the figures today, although I understand that the trend in the seasonally adjusted figures continue upwards. That is confirmed by the right hon. Gentleman's answer and I am pleased 226 to note his assent to that view. Does he not agree that the most important thing—and the most distressing aspect of the present situation—is the continuing increase in the number of long-term unemployed? In those circumstances, will not the Government, at long last, consider reversing their present catastrophic policies?
§ Mr. PriorI agree with the hon. Gentleman that the problems of the long-term unemployed are bad and that the numbers are far too high. We are trying to help with the special temporary employment programme. Perhaps the best thing we can do for the long-term unemployed is to get interest rates down.
§ Sir A. MeyerDoes my right hon. Friend despair of getting the unions to see that increases in wages unaccompanied by increases in production must, inevitably, mean job losses?
§ Mr. PriorI think that we have to go on and on talking about this and bringing home to everyone, trade unionists and non-trade unionists, that unless we can squeeze inflation out of the economy—wages are one of the important factors contributing to the high rate of inflation—we shall have to live with much higher levels of unemployment than are acceptable to the British people.
§ Mr. John GrantThe right hon. Gentleman referred to the special temporary employment programme when speaking of the long-term unemployed but the Government have cut the special temporary employment programme. When will the Secretary of State stop wringing his hands about the long-term unemployed and take action to deal with the problem?
§ Mr. PriorOne of the extraordinary things about the special temporary employment programme was that, until recently, the people for whom it was meant to cater were the long-term unemployed. On the whole, they were not using the programme and it has to be filled by other people. Since we cut back the scheme to the development areas, special development areas and other special areas, the number of eligible people going into the scheme has increased considerably.
§ Mr. SpeakerOrder. The subject of unemployment comes up in several questions later.