Unemployment (Hansard, 31 October 1984)

§ 5. Mr. Millan
asked the Secretary of State for Scotland if he will make a statement about Scottish unemployment.

§ Mr. Younger
There were 15,000 more jobs in Scotland in June 1984 than there were a year previously. I regard this as very encouraging.

§ Mr. Millan
My question concerned unemployment in Scotland, which is at a record level. The Secretary of State has not bothered to answer it. Is the Secretary of State aware that a Bill that is now completing its stages will reduce regional aid in Scotland by about 30 per cent.? Is he aware that, in view of that, there is widespread opposition in Scotland from the CBI as well as the STUC 1283 to any further reduction in regional aid? If the rates of grant or the areas covered are reduced after the review — there is much speculation about that — the Government will receive the most hostile reception.

§ Mr. Younger
I note that the right hon. Gentleman went out of his way not to welcome the fact that we have 15,000 more jobs. He might like to note, even if he will not welcome it, that we had 35,000 more service jobs in June 1984 than one year previously. The right hon. Gentleman is wrong to suggest that decisions on regional policy have been finalised. He should know from the White Paper that the Government have clearly stated that they believe in strong and effective regional policy. It is against that background that the right hon. Gentleman should judge the effectiveness of the changes when they are announced.

§ Mr. Corrie
Is there any likelihood of jobs being created in the west of Scotland thanks to oil exploration? Does my right hon. Friend agree that Ardrossan harbour is an ideal location for a base as there is serious unemployment in that area?

§ Mr. Younger
I note my hon. Friend's excellent point about Ardrossan harbour, which might well be suitable. Exploration is being conducted in many coastal areas, including the west of Scotland, but so far no large exploitable finds of oil have been made.

§ Mr. Steel
What percentage of people who left school in Scotland in June went straight into the dole queue, and how many more can be expected to join it after a temporary period on youth training schemes?

§ Mr. Younger
I am glad to see the right hon. Gentleman here today after fulfilling a different role yesterday. I am sure that it was a happy occasion. As to youth unemployment, all those who leave school this year are guaranteed either a job or a place on the youth training scheme. A large proportion of people who have just completed their year on YTS are getting employment. We hope that that pattern will be repeated this year.

§ Mr. Forth
Is my right hon. Friend aware that the level of unemployment in the west midlands of England is, regrettably, comparable to that of Scotland? Is he further aware of the resentment in the west midlands at the vast amounts of money given——

§ Mr. Speaker
Order. The hon. Member must relate his question to Scotland.

§ Mr. Forth
I am making a comparison between unemployment in Scotland and in the west midlands. I wish to draw a comparison between the effects of regional policy in Scotland and its effects in the west midlands. I then wish to ask my right hon. Friend to bear in mind the fact that the west midlands expects treatment equal to that afforded to Scotland regarding regional policy. Will he bear that in mind?

§ Mr. Speaker
Order. That is precisely my point. The Secretary of State cannot answer that question.

§ Mr. Younger
All Scottish hon. Members will appreciate the feelings of my hon. Friend. I assure him that regional policy has always been a Great Britain policy. It is in the interests of Great Britain as a whole that those areas which require help should receive it.

§ Dr. Godman
I am sure that the Secretary of State will share my satisfaction at the continuing investment in IBM 1284 and National Semiconductor in my constituency. Is he aware that recently Greenock and Port Glasgow has shown the sharpest increase in unemployment of the whole Strathclyde region? Is not the present figure of male unemployment, which is in excess of 23 per cent., scandalously high?

§ Mr. Younger
The position in Greenock and Port Glasgow has been causing deep anxiety for a long time. In recent years, the electronics industry has become a larger employer than the older industries that used to be the largest employers. The Government have been pouring money and effort into the area to build a new base for its economy, and have achieved a measure of success.

§ Mr. Hirst
Does my right hon. Friend find it curious that the right hon. Member for Glasgow, Govan (Mr. Millan) is so critical about the increase in unemployment when many of its causes derive from the Labour Government of which he was a prominent member? Does he agree that there is genuine anxiety among Conservative Members about unemployment? Will he consider reviewing the policy in the public sector of employing people beyond pensionable age?

§ Mr. Younger
That point can certainly be considered in a longer term review about such policy. My hon. Friend is right to say that all hon. Members appreciate that, while unemployment is a major problem at present, we have the benefit of the Government's defeat of the main scourge of unemployment, which is, inflation. That is a great success and of permanent benefit to our economy.

§ Mr. Kennedy
How long does the Secretary of State think it will take for Government policies to be sufficiently successful to replace the jobs lost in the Highlands of Scotland under this Administration through the closure of the Corpach pulpmill and the Invergordon smelter?

§ Mr. Younger
It is the objective of all those ivolved with development in the Highlands, especially the Highlands and Islands Development Board, which has the largest budget ever, to reverse that trend. I was encouraged to read in the newspapers this morning that the president of the hon. Gentleman's party, Mrs. Shirley Williams, had been in Scotland yesterday and had said what a splendid example Scotland's economic progress was to the rest of Great Britain.

§ Mr. O'Neill
Does the Secretary of State remember that on 29 November 1983 in the Scottish Grand Committee he said: at long last Scotland is part of our economic recovery and is about to lead this country out of the recession that has caused so much damage. [Official Report, Scottish Grand Committee, 29 November 1983; c.783. Will he reflect on the fact that in September 326,300 people were out of work, which is 13,000 more than the figure for the previous September? While we recognise the achievement of the Locate in Scotland bureau in bringing work to Scotland, we need about 1,500 jobs a month to start to erode the unemployment level. At present the Government are not even keeping unemployment down. Is he not ashamed of the statement that he made to the Scottish Grand Committee?

§ Mr. Younger
On the contrary, anyone considering the progress of the Scottish economy against the background of the recession through which we have been will see that notable advances have been made in Scotland. The hon. 1285 Gentleman referred to September, and he might wish to note that since 1 September no less than 5,087 new jobs have been announced for Scotland. He might also wish to record that the average number of people being placed in employment from jobcentres is between 15,000 and 20,000 every month.