Unemployment

HC Deb 05 July 1989 vol 156 cc300-1

12. Mr. Jack

To ask the Secretary of State for Scotland what was the level of unemployment in Scotland in (a) January 1987 and (b) May 1989.

Mr. Lang

Seasonally adjusted unemployment in Scotland in January 1987 was 340,600; and the corresponding figure for May 1989 was over 100,000 lower at 239,800. Unemployment in Scotland now stands at its lowest level for eight years.

Mr. Jack

I thank my hon. Friend for that excellent and encouraging reply. Does he agree that the Government's economic policies have helped to achieve that result? No doubt, that will cause distress to the Oppositon. Will my hon. Friend confirm that inward investment has contributed to that excellent result and that such investment would be strongly questioned by overseas companies should the Labour party ever have the chance to govern this country again?

Mr. Lang

I am grateful to my hon. Friend. He is right. We saw the Labour party's contribution to the inward investment effort when it helped drive Ford from Dundee.

Mr. Michael J. Martin

The Minister will know that high unemployment, especially among our young people, forces many young people to go to the London area. Is he aware of the posters at King's Cross advertising vacancies for waitresses and hostesses in busy West End clubs and saying that payment will be made daily? Surely, as long as the Government fail to consider unemployment in Scotland, our young people will be in moral danger.

Mr. Lang

It is certainly the case that different unemployment rates in different parts of the country attract people to move in different directions. My right hon. and learned Friend the Secretary of State has pointed out that Crusader Insurance recently decided to relocate from the south-east to the Inverclyde enterprise zone. That shows that market forces are working effectively within an integrated United Kingdom. The hon. Gentleman may like to know that unemployment in his constituency has fallen since January 1987 by 2,470.

Mr. Sillars

Will Scottish unemployment continue to go down over the next 12 months?

Mr. Lang

The hon. Gentleman knows that the Government never give forecasts, but, on the basis of what has happened over the past 25 months, that is a reasonable expectation. In the hon. Gentleman's constituency, unemployment has fallen by 1,685 over that period.

Mr. Hind

My hon. Friend is to be congratulated on the attraction to Scotland of major inward investment projects, such as JVC, Digital, Compaq and Crusader Insurance. Is he aware that inward investment organisations in the north and south of England are complaining that everywhere they go in the world they are faced with Scottish Ministers and the Scottish Development Association—[HON. MEMBERS: "What is that?"]—sorry, the Scottish Development Agency? The success of the Scottish Office and the SDA has been widely commented on south of the border. Will my hon. Friend do us all a favour and not try quite so hard in the future?

Mr. Lang

I am grateful to my hon. Friend for his tribute to the inward investment successes of the Government and our agencies. It is true that the electronics industry in Scotland is of great value to the Scottish economy. It accounted for our single biggest export category when, in 1987, 26 per cent. of our exports, valued at £1.5 billion, were in that category. The one thing that would jeopardise our inward investment efforts would be the uncertainty created by tax-raising devolution.