HC Deb 02 February 1983 vol 36 cc283-5
3. Mr. William Hamilton

asked the Secretary of State for Scotland if he will make a statement on the increase on long-term unemployment in Scotland.

Mr. Younger

On 14 October 1982, the latest date for which information is available, 127,837 people in Scotland had been unemployed for more than 12 months.

I am very concerned about the high numbers of the long-term unemployed. It is for this reason that the Government have greatly expanded the resources of the community programme to help them.

Mr. Hamilton

Is the Minister not ashamed of those figures? Does he accept that the White Paper on the Government's expenditure plans for the next three years shows that they expect an increase of about 280,000 unemployed next year in the United Kingdom? Does that not mean an extra 50,000 in Scotland, which would take the figure beyond 400,000? Is that not a disgrace? Does it not call for a radical change in the Government's policies?

Mr. Younger

It is certainly a matter of great concern that unemployment figures have reached the level that they have and that they have been rising for many years. That is common ground. I think it is generally agreed by almost all economic commentators that it would be sheer cruelty to pretend that in future unemployment will come down rapidly, because it simply will not.

Dr. J. Dickson Mabon

Is not the paradox of public funds in excess and public funds in stringency at the beginning of the year the reason why long-term unemployment in Scotland is bound to increase unless the Government return to Keynesian principles of investment?

Mr. Younger

If the right hon. Gentleman means that the Government should expand public spending and thus risk high interest rates, he will get a chorus of "No" to that from everyone in industry.

Sir Hector Monro

Does my right hon. Friend agree that in the present world recession one of the many outstanding achievements of this Government has been to get inflation down to 5 per cent? Does he further agree that that puts us in a much better position to attract new industry than if we continued with the 25 per cent. inflation bequeathed to us by the Labour party?

Mr. Younger

My hon. Friend is right. The greatest enemy of jobs in every industry is continued inflation at the levels that the Labour Government seemed content to allow. This Government's great achievement is sensationally getting inflation down to very low figures.

Dr. M. S. Miller

Is the right hon. Gentleman not concerned about the number of long-term unemployed teachers in Scotland? Will he speculate and estimate the numbers of extra teachers who could be employed in Scotland if regional education authorities were given the grant of £5,000 per child that is available to children of Common Market civil servants?

Mr. Younger

I am not sure about the latter point. If the hon. Gentleman will put down a question on the matter, I am sure that one of my right hon. or hon. Friends will answer it.

I am concerned about the numbers of unemployed teachers. However, it should be remembered that teachers are paid out of the public purse, and ratepayers have great difficulty in finding the sums that are now asked of them, let alone any extra sums.

Lord James Douglas-Hamilton

Is it not true that the effective cure for long-term unemployment in Scotland is not merely to encourage industry to be competitive but to encourage small businesses? Will my right hon. Friend take up their representations with my right hon. and learned Friend the Chancellor of the Exchequer before the Budget so that their problems may be taken into account?

Mr. Younger

I know that my right hon. and learned Friend the Chancellor of the Exchequer has received many representations about small businesses and, as we all know, has already done a vast amount to help them through a difficult period. However, the most important way in which to help small businesses is to get down inflation and to avoid interest rates being pushed up again. I am sure that every person involved in small business would agree with that.

Mr. Millan

Is not the appalling aspect of yesterday's White Paper not only that the Government are forecasting an increase in unemployment of nearly 300,000 in 1983–84, but that that increase will continue up to 1985–86? Is not the real cruelty that the Government are continuing with policies that are causing appalling hardship to the Scottish people?

Mr. Younger

It depends on what the right hon. Gentleman feels is the responsible action to take. He might care to reflect whether it is better to tell the truth than to voice wholly unjustified and wild aspirations for huge reductions in unemployment, which everyone, including Labour Members, knows could not be brought about by any future Labour Government.

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