HC Deb 08 April 1981 vol 2 cc944-7
9. Mr. Gregor MacKenzie

asked the Secretary of State for Scotland if he will make a statement on the latest Scottish unemployment figures.

Mr. Younger

On 12 March, seasonally adjusted unemployment in Scotland stood at 264,600—11.7 per cent. While the continuing high levels of unemployment in Scotland are a cause for concern, I am encouraged by the slight fall in total unemployment in Scotland last month and by the fact that in recent months the underlying rate of increase in seasonally adjusted unemployment in Scotland has been slower than at the end of last year and less severe than in other parts of the United Kingdom.

Mr. MacKenzie

Is the Secretary of State aware that, while most hon. Members are very concerned about the number of people who are unemployed, we are becoming increasingly concerned about the length of time that people are unemployed? What are we to tell constituents over 45 years of age who genuinely believe that under this Government and their policies they will never work again?

Mr. Younger

I share the right hon. Gentleman's concern about the level of unemployment and the long-term nature of much of it. There are two points to be made in answer to his question. The first is to tell such people that there are considerable signs of new orders being gained by many industries in Scotland. This will undoubtedly mean that some skilled people will be called back to work—as many as possible, I hope. Secondly, the right hon. Gentleman can tell them that, so far as long term unemployment is concerned, not only has the youth opportunities scheme been expanded by 75 per cent. but a new scheme for the older unemployed is coming into being.

Mr. McQuarrie

While all hon. Members welcome the fact that my right hon. Friend is endeavouring to help the unemployed in Scotland, will he agree that Mitsubishi intends to create 200 to 300 more jobs in the course of the next year? This is the kind of activity that is welcome to Scotland.

Mr. Younger

I am grateful to my hon. Friend. There are many such cases. I am glad that Mitsubishi is one of them. Apart from those that I gave to the right hon. Member for Orkney and Shetland (Mr. Grimond), there are numerous other examples of export orders won within the last six months by Volvo trucks, Rolls-Royce Aero-Engines, Anderson Strathclyde and, most recently, Babcock's, whose huge boiler order for a power station in Hong Kong will keep thousands of jobs going in the West of Scotland.

Mr. Russell Johnston

Is the Secretary of State aware that the optimistic forecasts he has made are not shared by many people? Fraser of Allander, for instance, has forecast an unemployment rate of 320,000 by the end of the year. Is the Secretary of State saying that he disagrees entirely with this forecast? Can he give any estimate of new jobs that are likely to be created this year?

Mr. Younger

If I spent my time looking at all the gloomy forecasts made by various economists—364 or any other number—I would never get my job done at all. I concentrate on the practical matter of trying to get the maximum number of jobs into Scotland. I can tell the hon. Gentleman that in the past year no fewer than 14,500 new jobs were created by the efforts of the various agencies in Scotland. As recent items in the press have shown, we expect many thousands more in the near future.

Dr. M. S. Miller

Is not the right hon. Gentleman ashamed that were it not for the relative buoyancy of employment in East Kilbride, for which the Government can claim no credit, and if it were not for the oil industry—which is a fortuitous quirk of nature—Scotland would be the poorest country in Europe?

Mr. Younger

Of all the people I expected to put questions on this subject today, the hon. Gentleman is the last. He must be the envy of every hon. Member, having received yesterday some splendid news about a new development in his constituency which I would have thought he would unreservedly welcome.

Mr. Sproat

Will my right hon. Friend remind Opposition Members that, the present world recession aside, the main reason for the tragically high levels of unemployment is the uncompetitive state of British industry in relation to its international rivals? Will not he agree that the main reason for that uncompetitiveness is the fact that the trade unions have been their own worst enemies in insisting on overmanning, disproportionate wage demands, refusing to use new technology and other restrictive practices?

Mr. Younger

My hon. Friend is right in saying that the tragedy of unemployment and job losses in Scotland follows many years of policies pursued by the Labour Party. The greater tragedy is that every remedy that the Opposition now announce is a repetition of the old measures that have failed on every occasion when they have been put into effect.

11. Mr. David Steel

asked the Secretary of State for Scotland how many additional people have become unemployed in Scotland for each of the years 1977 to the present.

Mr. Younger

There was an increase in seasonally adjusted unemployment of 15,000 between March 1977 and March 1978, a fall of 6,100 between 1978 and 1979, an increase of 14,500 between 1979 and 1980, and an increase of 79,600 between 1980 and 1981.

Mr. Steel

Will the Secretary of State, in view of these escalating figures, undertake a review of development area policy? Is he aware that the Borders regional council has had to cancel a couple of projects because it cannot get the EEC funds which would have been available had it been a development area? This means a loss of employment in the Borders region.

Mr. Younger

I would like to see evidence of the instances that the right hon. Gentleman mentions. I appreciate the difficulties that the Borders has experienced. I have been to the area and talked to those concerned. In answer to the first part of the right hon. Gentleman's question, I do not think that I would be helping Strathclyde, which has a far higher level of unemployment than any part of the Borders, if I were to spread the aid that is available even wider. The highest priority must be given to those areas with the greatest difficulties.

Mr. Myles

Does my right hon. Friend agree that, but for the satisfactory outcome of the EEC agriculture price review, many agriculture workers in Scotland would now be unemployed? Does he agree that, if there had been a nil increase, as advocated by Opposition Members, unemployment would certainly have resulted?

Mr. Younger

My hon. Friend is right. My right hon. Friend did a magnificent job for the rural communities in Scotland in achieving the settlement on agriculture prices. I know that the NFU agrees with that.

Mr. Craigen

Has the Secretary of State studied the rising trend in short-time working in Scotland? Can he give figures to show the level now reached in Scotland since there are nearly 1 million workers on short-time working in Britain?

Mr. Younger

I shall give the hon. Gentleman the detailed figures, if he wants them. Short-time work is often one way of keeping a factory going during difficult times so that it is ready to take advantage of the upturn in the economy, when the time comes.