European Economic Community (Hansard, 19 October 1982)

§ 8. Mr. Adley
asked the Secretary of State for Employment if he will make a statement on unemployment trends throughout the European Economic Community

§ Mr. Alison
Unemployment has increased in all countries of the European Community over the past year. Comparing figures for the latest available 12 months, unemployment has increased by 45 per cent. in Germany, 39 per cent. in the Netherlands, 23 per cent. in Italy and 11 per cent. in the United Kingdom. Rates of increase have also been greater than in the United Kingdom in Ireland and Belgium. In the 12 months to August, unemployment in the EEC as a whole increased by 19 per cent.

§ Mr. Adley
It is obviously to be regretted that our European partners have problems as bad and, in many cases, much worse than ours. Can my hon. Friend explain why those problems arose here first? Will he explain to people why this is not a peculiarly British problem?

§ Mr. Alison
It is easy to answer that question. The British got in first with that abysmal performance on unit labour costs which doubled during the period of the last Government, compared with a rise of one-sixth in. Germany.

§ Mr. Cyril Smith
Do the Government subscribe to the view that a great deal of unemployment in Europe is due to overmanning, or is that myth put out by the Government only in relation to this country?

§ Mr. Alison
No. I would not venture to make a generalisation on the economies of Europe, about which I know probably even less than the hon. Gentleman. I do not mean to be rude to him. I can, however, say that the numbers in employment in Britain have always been consistently higher than in the countries of our partners in Europe. Many more are employed in Britain traditionally. The fact that our partners are now experiencing a serious increase in unemployment is proportionately much more serious for them than for us.

§ Mr. Foster
Is it not true that the United Kingdom has the highest level of long-term unemployment throughout the whole of Europe? Is it not also true that, within the United Kingdom, the North of England has one of the highest incidences of long-term unemployment? Is it not time that the Minister began to take this problem seriously? Will he now bring in a programme of education and training for the long-term unemployed as he has done for the young unemployed?

§ Mr. Alison
Britain was, unfortunately, first in experiencing a sharp increase in unemployment following the effects of the drop in competitiveness caused by the previous Government. It follows that because unemployment has been rising more rapidly over a longer time, there will be more long-term unemployed. However, we have without doubt the best programme in the European Community, worth now 130,000 places, for helping those who have been unemployed for 12 months or more.

§ Mr. Teddy Taylor
In view of the depressing unemployment figures in the European Economic Community and the Minister's great concern to battle against unemployment, might there not be a case for the Minister allocating two or three civil servants to study why this situation should exist in the EEC while countries on the edge of the Community that did not join—Norway, Sweden and Switzerland—have less than 4 per cent. unemployment?

§ Mr. Alison
There are also countries like Spain, which is not in the European Community, with an unemployment rate of nearly 14 per cent.

§ Mr. Radice
Has the Minister noticed that under a Socialist Government in France the seasonally adjusted unemployment level has been stable for the last 12 months? In the last four months, inflation has dropped 4 per cent., from 14 per cent., which was the inheritance from Mr. Barre, to 10 per cent. today? Would it not be better for the Government to concentrate on their own back yard, especially as a secret Treasury report says that unemployment will rise to 3.5 million in the middle of next year?

§ Mr. Alison
My latest information on the French unemployment figures is that they averaged 7.8 per cent. in 1981. The latest available figures—for August 1982—showed a very sharp increase to 10.9 per cent. There has also been an increase in the rate of inflation, a run on the currency and severe problems over the balance of payments.