HC Deb 30 March 1982 vol 21 cc154-5
10. Mrs. Renee Short

asked the Secretary of State for Employment what action he intends to take to reduce the high levels of unemployment in the West Midlands.

Mr Waddington

The Government's policies are aimed at developing a soundly based economy, which means, among other things, bringing down inflation. As this is achieved and productivity continues to improve, British firms will become more competitive. This is the only way to create new and secure jobs, not only in the West Midlands but throughout the country.

Mrs. Short

I had hoped that the Minister would have some definite proposals to ease the problems of the West Midlands. Is he aware that the unemployment among building and construction workers generally is three and a half times what it was in 1979? Does he accept that one of the quickest ways of injecting jobs, which will combat inflation, is to do something about that figure?

Mr. Waddington

The hon. Lady asked whether the Government have any proposals. The Government have policies that are succeeding. The hon. Lady knows of the fall in unemployment. In each of the last eight months vacancies in the West Midlands have been higher than they were a year previously. That should give hope to all those in the West Midlands. I hardly need remind the hon. Lady that the policies espoused by her party do not have the slightest relevance to the problems that we are now facing, and if they were to be put into effect they would no doubt lead to a worse catastrophe than that which hit this country in 1976.

Mr Stokes

Is my hon. and learned Friend aware that people on the shop floor in the West Midlands are far more realistic in these matters than the hon. Lady, who is always moaning? These workers know very well that as their firms become more efficient and attract more customers, so unemployment will come down.

Mr Waddington

My hon. Friend is right. One has only to see the massive export orders that have recently been won to realise the gains that have come from improved competitiveness. It is through that that industry will recover in the West Midlands.

Mr Winnick

Is the Minister aware that the increase in unemployment from 5 per cent. when the Government took office to over 15 per cent. in the West Midlands now is an appalling indictment of Government policies? Is he also aware of the great personal suffering caused to countless families in the region as a result of the Government's policies?

Mr. Waddington

I am sure that the hon. Gentleman used equally strong language against his own Government when unemployment doubled between 1974 and 1976.

Mr Butcher

Is my hon. and learned Friend aware that in Coventry the new enterprise allowance scheme has been a great success? In its first month of operation over 114 redundant workers applied to the scheme, over half of whom were rapidly processed and approved? Does my hon. and learned Friend agree that the scheme offers the best chance of liberating people from the dole queue and giving them a new start in life in their new venture?

Mr. Waddington

My hon. Friend is right when he says that the new enterprise scheme has received a warm welcome, and rightly so. It is proper that people who are prepared to set out on their own should be given some help when they do so.