Unemployment (Hansard, 3 November 1992)

§ 4. Sir Fergus Montgomery
To ask the Secretary of State for Employment what action is being taken at a European Community level under the British presidency to help combat unemployment.

§ Mr. Michael Forsyth
My right hon. Friends are fighting to complete the single market and secure a conclusion of the GATT round, which is vital for jobs in Europe. We shall also continue to oppose job-destroying measures such as the working time directive.

§ Sir Fergus Montgomery
Will the Minister take every opportunity to impress on the Commission that bureaucracy and regulations destroy jobs?

§ Mr. Forsyth
I agree with my hon. Friend, and if I were to make a criticism of the Commission and the Community, it is that in the past they have concentrated far too much on measures geared to those in work. There are 16 million people unemployed in the European Community. It is high time that we had a package of measures which recognise that job creation depends on creating the conditions in which businesses can expand —and that means deregulation and a concentration on free enterprise, not more regulation to destroy businesses and employment.

§ Mr. Malcolm Bruce
Does the Minister agree that any further delay and dithering on Britain's position in relation to the rest of the European Community, specifically our attitude to the Maastricht treaty, will drive away foreign investment and have a devastating effect on jobs in this country?

§ Mr. Forsyth
I could not possibly agree with the hon. Gentleman. He must be aware that one of the things that needs to be discussed at the Council in Edinburgh is the impact of the Delors 2 package, which will mean redirecting some 40 per cent. of the resources currently provided to help the unemployed through the European social fund away from the unemployed and towards those in employment. The hon. Gentleman should not confuse being pro-European with not looking after our country's interests.

§ Mrs. Currie
May I support my hon. Friend's announcement of a package of measures to combat unemployment and urge him to tell us what they are? If the European Community means anything, it surely means co-operation between nations to work together to ensure that all barriers to employment are removed. For example, interest rates should be reduced throughout Europe so that we, like the United States of America, can recommence growth.

§ Mr. Forsyth
I agree with my hon. Friend. It is important that we make progress in reducing interest rates. Now that we are out of the exchange rate mechanism, we have seen further progress in that area. My right hon. Friend the Secretary of State, in her capacity as President of the Social Affairs Council, has promoted a package of measures which I shall send to my hon. Friend the Member for Derbyshire, South (Mrs. Currie). My hon. Friend will be delighted that the Danes plan to continue that during the course of their presidency.

§ Mr. Mandelson
Will the Minister confirm that, prior to the recent Council meeting in Birmingham, the President of the European Commission wrote to the Prime Minister and asked him to place unemployment and a Europewide programme of measures to combat it on the agenda for that Council meeting? Will the Minister explain why the Prime Minister turned down that request out of hand? Will the Prime Minister rectify that by placing the issue of jobs and measures to tackle them high on the agenda of the forthcoming Council meeting in Edinburgh?

§ Mr. Forsyth
The hon. Gentleman is obviously blissfully unaware of the Social Affairs Council which took place in Chepstow, where that matter was the main subject on the agenda and where Ministers from throughout Europe focused on it. I am sure that the hon. Gentleman will join me in calling for a completion of the single market and the GATT round, both of which are vital to employment throughout Europe and the world.

§ Mr. Burns
Does my hon. Friend accept that throughout Europe, including Chelmsford, many thousands of jobs are being lost in defence-related industries as a result of the peace dividend? Given that those losing their jobs are highly skilled members of the work force, does he agree that the European Community should seek to look at that problem and try to come up with a constructive package so that those people can be put back to work and use their skills for the benefit of each member state of the European Community?

§ Mr. Forsyth
I agree that that is an important matter. My hon. Friend is right to focus attention on those who are made redundant, perhaps in mid or late career, as a result of structural changes of that kind. One of the matters that we must concentrate on fighting within Europe is the practice of ageism, which discriminates against people because of their age. The European Community institutions are guilty of that themselves.

§ 5. Mr. Nigel Jones
To ask the Secretary of State for Employment what steps she is taking to reduce unemployment in Cheltenham.

§ The Parliamentary Under-Secretary of State for Employment (Mr. Patrick McLoughlin)
The Employment Service and training and enterprise councils deliver a wide range of employment, enterprise and training programmes to help unemployed people back to employment. In Cheltenham, as elsewhere, these programmes are tailored to take account of special local circumstances.

§ Mr. Jones
May I press the Minister on the answer that he gave a few moments ago? Does he believe that the ratification of the Maastricht treaty will be good or bad for jobs in my constituency?

§ Mr. McLoughlin
My right hon. Friend the Prime Minister has clearly made the point about the ratification of Maastricht. The simple fact is that a number of inward investment programmes would be in danger if we were unable to complete the single market. Inward investment is the important point.