Unemployment (Hansard, 15 July 1982)

§ 3. Mr. Parry
asked the Chancellor of the Exchequer when he now expects his policies to result in a fall in unemployment.

§ Mr. Canavan
asked the Chancellor of the Exchequer what is his assessment of the effect of his policies on unemployment.

§ The Minister of State, Treasury (Mr. Barney Hayhoe)
Employment prospects should improve as inflation comes down and our competitiveness improves. The Government have done much to alleviate the impact of unemployment on particularly vulnerable groups such as school leavers. As is usual, I make no forecast about future employment levels.

§ Mr. Parry
Does the Minister agree that the real level of unemployment is more than 4 million and that the Government's policies are not working, despite their attacks on trade unions, the unemployed, the sick and disabled and others? When will the Chancellor of the Exchequer introduce measures drastically to reduce unemployment?

§ Mr. Hayhoe
Our policies are working. Inflation is falling and competitiveness is improving. These two factors together provide the best hopes of improvement.

§ Mr. Canavan
When will Ministers stop spreading the rubbish that high wage demands cause high unemployment when the truth is that we have one of the lowest wage economies combined with the highest rate of unemployment in Western Europe? Surely it is about time that the Government started to take action against unscrupulous employers such as Murdoch and Co. in Kilsyth in my constituency, which seems to be involved in some shady sort of asset stripping while making redundant the entire work force, the average take-home pay of which is less than £50 a week?

§ Mr. Hayhoe
When high wage rises lead to decreased competitiveness in British industry, fewer people buy British goods and that leads to a loss of jobs. Higher wage increases this year will lead to the export of jobs rather than the export of goods.

§ Sir William Clark
Does my hon. Friend agree that one of the main reasons for high unemployment lies in past excessive wages claims without increased productivity, leading consequently to a loss of competitiveness in export markets and in the home market? Does he accept that a second main reason lies in the irresponsible strikes that we have suffered in the past and especially the one that we are suffering now with ASLEF, which will lead to even higher unemployment because of the irresponsible attitude of the leaders of ASLEF?

§ Mr. William Hamilton
Pompous man.

§ Mr. Hayhoe
My hon. Friend is exactly right. I hope that all who can bring some influence to bear will bring it to bear upon ASLEF leaders in asking them to call off a damaging and unnecessary strike.

§ Mr. Shore
The Minister was asked the simple question "When does he expect the level of unemployment to fall?". The simple and obvious answer is that he has no such expectation. Not one forecast available to the Government, or others outside, predicts any fall in unemployment over the next three years. Are we not faced with a stubborn, instransigent and insensitive Government who are planning on the basis of at least 3 million unemployed from now until the next election and beyond?

§ Mr. Hayhoe
It is clear that the right hon. Gentleman did not listen to my answer. I said—this was customary with the Government of which he was a member as well as with this Administration—that I do not make estimates of future levels of employment.

§ Mr. Beaumont-Dark
Does my hon. Friend agree that one way to reduce unemployment would be to remove the discriminatory hire purchase restrictions on motor cars? The motor industry forecasts that if that were done another 70,000 or 80,000 cars would be sold, which would obviously help to reduce unemployment.

§ Mr. Hayhoe
I know that this matter is being actively promoted and I am sure that my right hon. and learned Friend has taken note of my hon. Friend's comments.

§ Mr. Anderson
Does the Minister agree that the honest answer is that, with the range of current policies, there is no way in which the level of unemployment will be less than 3 million in the foreseeable future? Do the Government accept that? If not, what do they intend to do about it?

§ Mr. Hayhoe
The honest assessment is that we shall succeed only by reducing inflation and by making industry more competitive. If there are to be more jobs, more people at home and abroad must buy British goods and use British services, and these will have to be of the right price and the right quality.