§ 13. Mr. Norman Atkinsonasked the Chancellor of the Exchequer if, in the light of recent experience, he will change the assumptions upon which the Treasury model computer programme is based in regard to lower wages and job creativity.
§ Mr. Peter ReesNo, Sir.
§ Mr. AtkinsonDoes the Treasury understand that those who advise the Chancellor assume that the lowest paid in manufacturing industry produce the lowest unit labour costs, and that if wages in the public sector go down 10 per cent. in aggregate that will increase employment prospects by 10 per cent.? Will the Chief Secretary review those assumptions and come to some better understanding, if policy is to make sense?
§ Mr. ReesI assure the hon. Gentleman that we review the Treasury model's operations fairly regularly. If he is doubtful about the assumptions that are fed in, he is quite at liberty to feed in his own assumptions and have a go on the model himself.
§ Sir Anthony MeyerAs full industrial employment in the old-fashioned sense is unlikely to return under Governments of whatever colour, if only because of technological change, and as it is better for people to have a part-time job than no job at all, should not the Government take pride in the fact that this is a Budget for part-time jobs?
§ Mr. ReesWhether part-time or full-time, we take pride in the fact that this is a Budget for jobs. A range of measures, many of which my right hon. and hon. Friends have drawn attention to, such as the restructuring of national insurance contributions, the raising of thresholds and improvements and additions to the youth training scheme and the community programme, all demonstrate that it is a Budget for full-time and part-time jobs.
§ Mr. SkinnerIs the Chief Secretary aware that unemployment has gone up ever since the Treasury model was installed? Would it not be a good idea to get rid of this computer? Was it developed by Tycom—like the one which the Conservatives used but found they had to get rid of?
§ Mr. ReesI regret to say that I cannot tell the hon. Gentleman whether it is a Tycom model. However, the basic thrust of our policies depends on sound common sense and a grasp of basic economic principles. We do not need the refinements of the Treasury model to assist us there.
§ Mr. BudgenDoes the Treasury model show that a high proportion of people who are paid large wages are employed by big firms? Will my right hon. and learned 976 Friend confirm that big firms have recently enjoyed a considerable increase in liquidity and profitability—as is shown by the high level of shares on the Stock Exchange—and that the change in the employers' contribution is unlikely to cause any increase in unemployment among rich people?