HC Deb 24 February 1981 vol 999 cc727-8
1. Mr. Dykes

asked the Secretary of State for Employment if he intends to meet his counterparts in the European Economic Community to discuss measures to reduce unemployment through the use of Community mechanisms and resources.

The Secretary of State for Employment (Mr. James Prior)

I regularly discuss unemployment with my EC colleagues at meetings of the Council and in bilateral contacts.

Mr. Dykes

I thank my right hon. Friend for that answer. As it has been estimated recently that unemployment in this country would be 20 to 30 per cent. higher if we were not a member of the EEC, is not the mirror image of that the point that we need to build up the social fund in future with our partners, so that we can deploy more resources, particularly for building up employment in future years?

Mr. Prior

We should like to build up the social fund. We received 23 per cent. of its allocations. In addition, we do 42 per cent. of our trade with the Community. That is an important factor. We are also receiving in one way or another—as announced yesterday—£20 million for help with new jobs. There will be 4,000 new jobs in areas hit by the rundown in coal and steel.

Mr. Ashley

Is the Secretary of State aware that unemployment in North Staffordshire is growing at the incredible rate of over 100 per cent. and that prosperous industries are being shattered? Is not that a strong case for special help from the European fund for those industries, especially as the pottery industry can be a growth point for Britain when the economy revives?

Mr. Prior

The more help we can get from the Community, the better it will be. We are now receiving more from the social fund and our fair share from the regional funds. We have also agreed to go along with other methods, such as trying to cut back unecessary overtime. Provided that that does not put up unit labour costs, it could be of enormous help.

Mr. Kenneth Carlisle

As my right hon. Friend has said, unemployment is a Community problem, not just a British problem. In this respect, would he not agree that the best chance we have of reducing unemployment is by encouraging an increase of trade within the Community? Will he make certain that the Government stand firmly against import controls and go as hard as possible for fair and competitive trade? In this respect, are not the service industries, such as insurance and banking, important?

Mr. Prior

Insurance and banking are important and are likely to be growth employment areas. I fully support what my hon. Friend has said. There is a case for certain selective import controls to help industries through a difficult period, but general import controls would invite retaliation and lead us into more trouble.

Mr. Skinner

Will the Minister confirm that since we joined the Common Market in 1973 unemployment has risen by 1½ million? Does he accept that the rest of the Common Market countries are doing albeit not as successfully as they would like, but much better than us in exporting part of their unemployment to Britain?

Mr. Prior

It is true that one of the problems from which we suffer arises from the fact that, because of our failure to produce the right goods at the right time and at the right price, we have been importing other people's goods and therefore other people's unemployment. The hon. Gentleman makes accusations about the level of unemployment compared with what it was when we joined the Community. He ought to ask himself what that level would be if we had not joined the Community.