HC Deb 07 June 1988 vol 134 cc699-700
1. Mr. Greg Knight

To ask the Secretary of State for Employment if he will make a statement on the levels of unemployment in the east midlands.

The Parliamentary Under-Secretary of State for Employment (Mr. John Lee)

In April 1988, seasonally adjusted adult unemployment in the east midlands region was 154,200, compared with 189,300 in April 1987, a fall of nearly 19 per cent. over the last 12 months.

Mr. Knight

Does my hon. Friend agree that that is good news for the east midlands and yet further evidence that the Government's economic policies are working? Can my hon. Friend tell me the figures for my constituency of Derby, North? Does he accept that one of the biggest threats to future job creation in Derbyshire, emanates from the high-spending, irresponsible policies of the Labour-controlled Derbyshire county council? Is it not the case that high rates cost jobs?

Mr. Lee

My hon. Friend is absolutely right. High rates do cost jobs. The figures that I have just given show the success of the Government's economic policy in getting unemployment down. In my hon. Friend's constituency unemployment has fallen by more than 700 or 13.7 per cent. during the past 12 months.

Mr. Vaz

Is the Minister aware that last week the Corah company, a leading east midlands firm with a national reputation has made 780 people redundant? I visited the firm yesterday and there was tremendous anxiety among those who have kept their jobs as well as those who will lose their jobs, about their employment prospects. There was special concern that, despite the financial position of the company, it continued to recruit workers during the last 12 months. What is the Minister prepared to do to boost the employment prospects of textile workers in the east midlands?

Mr. Lee

Obviously, one sympathises with any redundancy, but even in the textile industry there are skill shortages. As for Government support, something like £100 million of regional assistance has gone into the region since May 1979. We have inner city task forces in Nottingham and in Leicester, and the full endeavours of the Department of Employment and the Manpower Services Commission, or the Training Commission as it is now called, are available to help those who, sad to say, have lost their jobs in the redundancies that the hon. Member for Leicester, East (Mr. Vaz) mentioned.

Mr. Ashby

Does my hon. Friend agree that the excellent figures are due in no small part to excellent companies such as Rolls-Royce which, with its entrepreneurial approach, has just obtained a £1 million order in the United States? Is that not an example of the Government being able to free industry really to get going and do what it should be doing?

Mr. Lee

My hon. Friend is absolutely right. However, he got it slightly wrong in that, if I am correct, it was a £1 billion order rather than a £1 million order. I follow the fortunes of Rolls-Royce very carefully because it has a major plant in my constituency at Barnoldswick which is doing very well. Of course, the very important plant at Derby is in my hon. Friend's constituency.

Mr. Janner

Is the Minister aware that the closing down of the Corah knitwear plant in my constituency, referred to by my hon. Friend the Member for Leicester, East (Mr. Vaz), is a potential tragedy for more than 700 families, because the knitwear industry is still in recession, still having slack times and still getting no help from the Government?

Mr. Lee

With the greatest respect, there is nothing I can add to the comment I made in reply to the question from the hon. Member for Leicester, East (Mr. Vaz).