HC Deb 17 June 1981 vol 6 cc1014-5
14. Mr. Maxton

asked the Secretary of State for Scotland what estimates he has made of the total numbers of people made unemployed as a result of the cuts in public expenditure in Scotland.

Mr. Alexander Fletcher

It is not possible to make estimates of the precise effects of changes in public expenditure. The control of public expenditure is an essential part of the Government's strategy to control inflation and restore economic competitiveness, which is the only way to bring about the creation of new, secure jobs.

Mr. Maxton

Is the Minister aware that it is an insult to the House to project economic policies for Scotland and to be unable to give any estimate of the effect on unemployment, which is one of the most disastrous consequences of his policies? Is he aware that unemployment has been created in both the public and private sectors as the result of his economic policies, which include the cutting of public expenditure? Will he admit that his economic policies, far from improving the economy, are making it considerably worse?

Mr. Fletcher

If the hon. Gentleman does not know already from the experience of his own party when in Government, I can tell him that high levels of public expenditure create unemployment. High rate demands create unemployment. That is the lesson of the past 10 to 15 years in Scotland. That is why we are taking action to remedy these faults.

Mr. John MacKay

Has my hon. Friend made any attempt to estimate from the returns that he receives how many firms have shed labour because of the high rate demands? Does he recall a letter that I read in the House during the Third Reading of the Local Government (Miscellaneous Provisions) (Scotland) Bill from the Tilcon group, which showed that that quarrying group would take into account excessive rate demands when it came to making a decision on its future labour requirements?

Mr. Fletcher

I am sure that my hon. Friend has received many such letters, as have I. I am sure that many Labour Members have received letters from companies in their constituencies stressing the loss of jobs in the private sector as the result of excessive rate demands.

Mr. George Robertson

Does the Minister realise that if local authorities and public agencies in general were as brutally insensitive as the Government are in carrying out all the public expenditure cuts that the Government exhort them to make, that would add thousands to the existing chronic unemployment rates as well as adding mightily, uselessly and needlessly to the money that is being paid out, without any great effect on the economy, in the form of unemployment benefit? Is not this morally indefensible at a time when unemployment, especially in Lanarkshire, is creeping up to almost 20 per cent?

Mr. Fletcher

I do not think that any Labour Member can talk about economic matters being morally indefensible. The hon. Gentleman is advocating increased public expenditure to bring about, perhaps, a short-term upturn in employment. That was the policy that was followed by the previous Labour Government and during their term of office unemployment more than doubled.