HC Deb 12 May 1981 vol 4 cc614-6
Q3. Mr. Campbell-Savours

asked the Prime Minister how many hon. Members she has seen on matters relating to factory closures since she last answered oral questions; and how many jobs are expected to be lost in the closures discussed.

The Prime Minister

I have had no such meetings since 7 May.

Mr. Campbell-Savours

Is the right hon. Lady aware that, as a result of her industrial gang war policy, unemployment due to closures in the Northern region has nearly doubled since the general election? Is she aware that in Cumbria it has doubled and in the West Cumbrian constituencies it has more than doubled? It will be almost 19 per cent. to 20 per cent. in the next few months. Will she tell our constituents in the Northern region when those factories that now stand empty will be put back to work under her policies?

The Prime Minister

There will be more factories in work, and new factories started, when people are prepared to purchase the goods and services produced. I am aware of the steel problem in the hon. Gentleman's constituency. He should know that steel has been over-manned for years. If the Labour Government had tackled the problem more vigorously we would have had a better equipped and more efficient steel industry. Consequently, we would now have a larger share of the world market. That problem must be dealt with. Until it is we shall not have a flourishing industry able to compete with any the world over.

Sir William Elliott

Is my right hon. Friend aware that in the trading estates in the Northern region in the past 12 months there have been three times as many new openings as there have been closures? [HON. MEMBERS: "No."] Look at the facts. Many of those new openings are small factories and there is a buoyant demand for more new small factories. To continue with the good news, is my right hon. Friend aware that a £14 million order for a Norwegian bulk carrier to be built on the Tyne was announced at a press conference in Oslo this morning?

The Prime Minister

We are always ready to accord congratulations to those many companies that are gaining new orders against competition from the rest of the world. In my speech in Scotland I gave lists of them. Many companies are doing extremely well. We accord congratulations to those many small companies that are starting up in the new factories to which my right hon. Friend the Secretary of State for Industry gives great priority. I congratulate my right hon. and learned Friend the Chancellor of the Exchequer on introducing an enterprise Budget which gives many people the opportunities, if they will take them. [Interruption.] The Opposition sit and laugh but do not produce jobs.

Dr. Edmund Marshall

Is the right hon. Lady aware that last Thursday, GEC Small Machines Ltd. announced its proposal to close its factory at Thorne in my constituency? That would mean a loss of 424 jobs in an area which is already an unemployment black spot. Will she have urgent consultations with GEC in an effort to avert that further severe loss?

The Prime Minister

The hon. Gentleman and many of his colleagues always miss one point. To keep factories in existence one needs customers and to get customers one needs to be competitive. There was no shortage of demand in this country last year. There was a shortage in the supply of goods produced at competitive prices, with good delivery dates, to fill that demand. Until industry becomes competitive we shall not produce the jobs, but other companies in other countries will.

Mr. William Hamilton

Tedious.

The Prime Minister

Tedious it may be, but it is the truth.

Mr. Archie Hamilton

Does my right hon. Friend agree that to use taxpayers' money to support jobs in one sector of the economy merely takes money away from the profitable and productive side of the economy?

The Prime Minister

We must ensure that we do not take too heavily from those successful companies to subsidise other companies, unless, by taking that subsidy, they are prepared to restructure themselves, to slim their operations down so that they become competitive. In that case we give them subsidies to do so.

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