Redundancies (Hansard, 17 April 1985)

§ 1. Mr. James Hamilton
asked the Secretary of State for Scotland what was the average number of redundancies in Scotland between 1977 and 1979 and between 1980 and 1984, respectively.

§ The Parliamentary Under-Secretary of State for Scotland (Mr. Allan Stewart)
The number of redundancies in Scotland involving 10 or more workers, notified to the Manpower Services Commission as due to occur, averaged 29,186 per annum for the period 1977 to 1979 and 47,207 per annum for the period 1980 to 1984. There are no statistics available where the number of redundancies is below 10.

§ Mr. Hamilton
Does the Minister accept that the Opposition believe that these figures are totally unacceptable and that they will not be acceptable during the lifetime of this Parliament? Does he recognise that the result of the revaluation will be a tremendous increase in rates which will lead to further redundancies because many companies will go to the wall? When will the Government and the Minister do something about it, in particular his right hon. Friend the Secretary of State for Scotland, who is our mouthpiece at Cabinet level?

§ Mr. Stewart
The hon. Gentleman seems to have forgotten that unemployment doubled during the lifetime of the last Labour Government. The Government's policies are designed to create a competitive economy. Output and employment rose last year. Business surveys are encouraging about the prospects for Scottish industry in 1985. As for rates affecting industry, the hon. Gentleman has misunderstood the position. Manufacturing industry will benefit from the revaluation.

§ Mr. Hirst
Does my hon. Friend agree that it is the height of hypocrisy for Opposition Members to try to make political capital out of the increase in the number of redundancies during the lifetime of this Government, as many of them are the logical consequence of high inflation, low investment and uncompetitive work practices of the previous Labour Government? Does my hon. Friend also agree that we should be talking not about redundancies but about Scotland's share of the 350,000 new jobs which have been created during the last year?

§ Mr. Stewart
My hon. Friend is absolutely right. Employment has been rising and the prospects shown by the business surveys are good. I was very surprised that the hon. Member for Motherwell, North (Mr. Hamilton) did not mention the increase in the work force at Terex or the fact that Honeywell has received contracts worth £35.2 million since January 1985. It does nobody any good to talk Scotland down.

§ Mr. Maclennan
Does the Minister recognise the importance to Scottish employment of the 80,000 jobs in the financial sector? If so, will he welcome the amendment to the Trustee Savings Bank Bill and ensure that the Government do not seek to reverse it at a later stage?

§ Mr. Stewart
Of course, the financial sector is very important to the Scottish economy, as is the service sector as a whole. Two out of three Scots are now employed in the service industries. As for the amendment made last night in another place to the Trustee Savings Bank Bill, no doubt my right hon. Friend the Chancellor of the Exchequer will note the position.