Job Creation (Hansard, 22 December 1983)

§ 8. Mr. Willie W. Hamilton
asked the Chancellor of the Exchequer if he will make a statement on the recent meeting of the National Economic Development Council about the creation of new jobs.

§ Mr. Lawson
For the council meeting on 7 December I submitted a paper on this subject, as did the TUC. At the meeting there was a wide measure of agreement, and discussions are taking place about a programme of further work.

§ Mr. Hamilton
It is suggested that at the meeting of the NEDC the Chancellor put forward a proposition that new jobs would come primarily from the service sector. As we have lost 2.5 million jobs during the recession, mostly in manufacturing, how on earth does he expect to replace those jobs from the service sector? Is it not the case that during a brilliant exposition on the radio this morning —[Interruption.]—supported by the CBI no less, it was shown that unless there is increased public expenditure on the infrastructure, on housing, transport and the rest, we shall not return to the employment and opportunities that we had even in 1979?

§ Mr. Lawson
The hon. Gentleman is becoming one of the best stand-up comics in the House.

§ Mr. Hamilton
Bettered only by the right hon. Gentleman.

§ Mr. Lawson
I am glad to be able to tell the hon. Gentleman that the despair which seems to inform his views on employment was not shared by anyone around the NEDC table, which included the TUC, which did not feel that there was a lack of hope or any feeling of despair. Employment in manufacturing has been declining since 1966. It now accounts for about 25 per cent. of this country's employment. The hon. Gentleman should also be aware that employment is now rising. The most up-to-date figures show an increase in employment during the second quarter of this year for the first time since the recession began.

§ Mr. Gregory
In view of the expectation of growth in the service sector, will my right hon. Friend give greater recognition in taxation terms in the forthcoming Budget to insurance, banking and tourism?

§ Mr. Lawson
My hon. Friend is asking me about the forthcoming Budget, about which I cannot speak. Certainly the contribution made by the service industries to the economy is of first importance.

§ Mr. Foulkes
Since one of the Government's few job creation strategies is the creation of experimental free ports, will the Chancellor tell the House when he expects to announce which areas are to be created free ports? Will he confirm that one is to be in Scotland, preferably at Prestwick airport?

§ Mr. Lawson
I believe that there is a later question on the Order Paper about free ports.

§ Mr. Adley
Is my right hon. Friend aware that I thought his paper to the NEDC was extremely good, and that the statement on regional policy by my right hon. Friend the Secretary of State for Trade and Industry was also good, because it at last recognised the importance of the service industry,in the economy? May we take it,therefore, that the Government have, once and for all, buried the myth that manufacturing jobs are the only worthwhile ones?

§ Mr. Lawson
The Government have buried all myths. They are prosecuting the conduct of economic policy in a spirit of realism. I should like to take the opportunity to pay tribute to my hon. Friend for the sterling work that he has done over the years to ensure that successive Governments do not overlook the performance of the service industries.