Employment (Hansard, 1 July 1982)

§ 8. Sir John Biggs-Davison
asked the Secretary of State for Northern Ireland if he will make a statement about the current state of employment in the Province.

§ The Minister of State, Northern Ireland Office (Mr. Adam Butler)
The latest available employment figures are for December 1981. At that time there were 464,050 employees in employment in Northern Ireland. At June 1981, a further 72,950 persons were self-employed.
The latest unemployment figures for June 1982 show the number unemployed in Northern Ireland at 116,071, which is 20.3 per cent. of employees.
A breakdown of these figures demonstrates the narrowness and fragility of the Province's industrial base and the appallingly high level of unemployment in certain areas. While Northern Ireland's economy is very dependent on that of the United Kingdom as a whole, and prospects for inward investment are affected by continuing international recession, the Government are persevering with their industrial development drive and with their comprehensive range of special measures designed to alleviate unemployment in the shorter term, particularly among young people.

§ Sir John Biggs-Davison
May we be assured that the percentage of Northern Ireland public expenditure given to industrial development is more than being maintained? 1030 Will the Minister assure us that EEC money will not, in this distressed region, be the victim of the Treasury rules about additionality?

§ Mr. Butler
I assure my hon. Friend that the proportion of public spending in Northern Ireland given to industrial development will be maintained. It is running at a higher percentage than under the previous Administration and is a priority for spending. As to additionality, the Treasury would argue that as public expenditure as a whole takes into account receipts from the Common Market, in theory, if the rule were not applied, there would be no net benefit to the Province.

§ Mrs. Shirley Williams
As circumstances in Northern Ireland are so grave, and as the possibility of employing people in construction is probably the best way, for a relatively low sum per head, of getting jobs, will the Ministers from Northern Ireland again represent to the Treasury that in this case additionality should not be applied?

§ Mr. Butler
The additionality rule is not being applied to the £16 million for housing. Representations continue to be made through the Council of Ministers to remove the block on that money so that it can be spent where it is most deserved.

§ Mr. Soley
In view of these devastating figures, will the Secretary of State give an explanation to the House, either now or in the near future, of why he started the small engineering investment scheme in March of this year and cancelled it in June, on the apparently incredible basis that there were too many applications costing too much money?

§ Mr. Butler
The hon. Gentleman is demonstrating, as he frequently does, his complete lack of appreciation of what public expenditure is about. The Government decided that £20 million would be made available to the scheme throughout the United Kingdom. It was increased to £30 million and it was decided in the interests of public expenditure as a whole that that was all that could be awarded for the scheme at the moment.

§ Rev. Ian Paisley
As the borough of Carrickfergus has been hardest hit by unemployment in the east of the Province, will the Minister tell us whether there are any prospects of new jobs in that area?

§ Mr. Butler
I cannot specify any new jobs, but the hon. Gentleman is well aware that Carrickfergus has a higher grant eligibility, which recognises the serious problem there. I commend the efforts of the Industrial Development Organisation, in particular, and the work that it is doing to attract jobs to the area.

§ Mr. Stephen Ross
Does the Minister accept that one of the great hopes for the new Assembly, which I very much support, is that it will create more employment in the Province, because those in the Province—politicians who are nearest to the work force and who know the area best—can often take initiatives which people in Whitehall and Stormont cannot do?

§ Mr. Butler
The Assembly, which represents a first step towards devolved government, will provide greater confidence that the present political instability in the Province will be overcome. That will have an important effect. Moreover, the presence of the Select Committees, 1031 as they come face to face with the industrial realities, will develop a greater responsibility among local politicians. That, too, will be of benefit.

§ Mr. Flannery
Is it not a fact that the disgracefully high unemployment in Northern Ireland is now so severe—even worse than elsewhere, as far as I know—that it is undoubtedly eroding the very industrial base of the community? Is not the Minister deeply worried that if there is an upswing that erosion will have been so severe that industry in Northern Ireland will not be in a position to fulfil the commitments that will arise in such an upswing?

§ Mr. Butler
I do not believe that. The economy of the Province has depended on that of Great Britain for a long time, and I believe that it will respond to an upturn in the United Kingdom economy as a whole. Nevertheless, when employment in manufacturing is as low as 105,000, it shows, as I said in my original answer, how narrow that base is.

§ Mr. Michael McNair-Wilson
Will my hon. Friend say to what extent the Belfast enterprise zone is helping to generate employment opportunities?

§ Mr. Butler
I shall certainly give my hon. Friend details, but it is correct to say that it is attracting both new businesses and relocated businesses, and therefore is of considerable help. It is too early to say whether the experiment is something that we should build on in the future.