HC Deb 08 March 1984 vol 55 cc976-8
8. Mr. Forman

asked the Chancellor of the Exchequer what has been the impact of the recovery upon employment.

Mr. Peter Rees

Latest estimates show a rise of 85,000, between March and September of last year, in the number of people in work.

Mr. Forman

I welcome that news as a modest step in the right direction. Does my right hon. and learned Friend agree that one of the great hopes for the economy in the coming period of recovery is the recovery and expansion of the service sector and of the new manufacturing industries in, for example, electronics?

Mr. Rees

My hon. Friend refers to two growth areas. I remind the House that there was an increase of about 200,000 in the number of people in service industries in the first three quarters of 1983.

Mr. James Hamilton

In view of the right hon. and learned Gentleman's remarks about recovery, is he aware that in Scotland unemployment has been increasing for a considerable time? Is he further aware that in my constituency one of the larger companies has gone into liquidation, that two other companies, in only four months, have also gone into liquidation, that one firm is on the brink of packing up and that, on that basis, 22.4 per cent. of the insurable population in Lanarkshire are unemployed? Is that recovery?

Mr. Rees

I am sorry to hear of the individual cases in his constituency to which the hon. Gentleman draws attention. [Interruption.] Perhaps he will lift his eyes a little and look at the increased activity in the Grampian region.

Mr. Nicholas Winterton

Will my right hon. and learned Friend confess to the House that, despite the views of some of the pundits in the Treasury, manufacturing industry is still the real wealth creator in this country? Will he further confess to the House that the majority of the service industries, such as insurance, banking, and shipping, are in existence only because they are serving manufacturing industry? Will he make this confession to the House and therefore give emphasis to manufacturing industry in the Budget and in Government policy?

Mr. Rees

Much as I should like to succumb to the charms of my hon. Friend, I am not certain whether I shall choose him as my father confessor in this matter. The service industries are very important. They may well complement the activities of manufacturers, but they also stand and justify themselves in their own right.

Mr. Wrigglesworth

Has not the recovery to which the right hon. and learned Gentleman referred been fuelled largely by a growth in consumer expenditure and by a lowering of the savings ratio? Will he therefore tell the House when he expects the recovery in the manufacturing sector, to which the hon. Member for Macclesfield (Mr. Winterton) has just referred, to come and how he expects that to be fuelled?

Mr. Rees

I remind the hon. Gentleman that the gross domestic product increased by 3 per cent. last year and is expected to increase by 3 per cent. this year.

Mr. Adley

Is my right hon. and learned Friend satisfied that the taxpayer will get good value from the Nissan development? Will he examine the funds to jobs ratio of that project vis-a-vis urban development grant projects, in which I declare an interest? Will he in due course let the House know whether he thinks the Nissan project stands up to this comparison?

Mr. Rees

The Nissan project is extremely important, but my right hon. Friend the Secretary of State for Trade and Industry should answer my hon. Friend's questions, and I shall make sure that his attention is drawn to them.

Mr. Barron

Reference has been made to individual cases of unemployment. Is the Minister aware that 3.2 million is well below the actual figure of unemployed, because of the way in which the figures are collected? Is he aware that the true figure shows no indication of coming down and that the outside world sees no sign of the so-called recovery that is talked about eloquently in the House? Is he further aware that in my constituency there is no uncertainty about the situation and that it is an utter disgrace to talk about a recovery that is doing nothing for the unemployed?

Mr. Rees

I think that the hon. Gentleman is basing his rather fevered observations on anecdotal evidence rather than on hard facts. I remind him, and this is factual, of the increase in the number of people in work of 85,000 between March and September last year.