HC Deb 29 June 1993 vol 227 cc808-9
2. Mr. Nigel Jones

To ask the Secretary of State for Employment what steps he is taking to assist defence-related industries to retrain staff in non-defence-related fields.

The Secretary of State for Employment (Mr. David Hunt)

Through the training and enterprise councils and the Employment Service, a broad range of programmes are available to help people affected by changes in defence-related industries.

Mr. Jones

What help are the Government giving to those companies attempting to diversify into non defence-related markets? For instance, T. I. Dowty in my constituency is currently negotiating a merger with Messier-Bugatti of France. Will the Secretary of State press the Government to reflect the special needs of areas most affected by defence rundown in next year's local government grant settlement?

Mr. Hunt

I understand that Gloucestershire training and enterprise council is involved in Dowty and has set up a job shop to advise people who are affected in any way. There is also a wide range of training opportunities.

On the hon. Gentleman's first point, let us recall that at the last election, the Liberal Democrat party proposed that there should be a 50 per cent. reduction in expenditure on defence by the turn of the century. I wonder whether the hon. Gentleman explained what the consequence of that would be in job losses to his constituents.

As regards the future, we are always looking at ways in which we can increase the competitiveness of the economy. Output in the aerospace industry has increased by more than 35 per cent. in the past 10 years, which is good news.

Mr. Burns

Does my right hon. Friend accept that the Marconi companies in Chelmsford have paid a heavy price as a result of the peace dividend and the world recession in defence contracts? Will he join me in congratulating those companies and English Electric Valve on the efforts that they are making to diversify into non-military contract winning, to help to sustain the employment market and we hope, at a future date, to bring new people into work? Will he also ensure that the Essex training and enterprise council does all it can to help retrain those defence workers who have been made redundant, who desperately need work and must be given work as soon as possible?

Mr. Hunt

First, I have already met the chairman of Essex TEC, Mr. Lawrence. I was able to have some words with him, and I look forward to further discussions. My hon. Friend is right to say that it is vital for the training and enterprise council to be involved in the way he describes. As for the second part of his question, I am happy to announce that the United Kingdom will participate fully in the Konver programme to assist regions affected by the decline in the defence industry. That will involve a total amount of about £15 million, through the European social and regional development funds.

Mr. Dobson

Will the Secretary of State confirm that, during the past three years, no fewer than 82,000 jobs have been lost in defence-related industries? Will he confirm that, during those three years, Tory Ministers have successively denounced Labour's proposals to shift people from defence to civilian work as ill-thought-out nonsense? Will he also confirm that if the Government had taken the Labour party's advice, many of the 82,000 people who have lost their jobs would not be on the dole but would be doing other useful work instead?

Mr. Hunt

First, I am happy to be in my new post, and look forward to many exchanges with the hon. Gentleman across these Dispatch Boxes. Secondly—sad to relate—he has again come to the Dispatch Box with some ill-thought-out nonsense. There is a wide range of training and retraining opportunities for people who have worked in the defence-related industries, and we will continue to ensure that resources are directed down that avenue.

Thirdly, I wish that the hon. Gentleman had welcomed my announcement about our acceptance of the new European programme. Finally, he criticises the Government, but what would have happened under Labour, with its 27 per cent. reduction in defence expenditure? What would that have meant in job losses throughout the United Kingdom?