HC Deb 01 March 1993 vol 220 cc7-8
6. Mr. Ray Powell

To ask the Secretary of State for Wales what measures he is taking to improve the employment prospects for the long-term unemployed in Ogmore, Mid Glamorgan and Wales.

Mr. David Hunt

Extensive measures.

Mr. Powell

I thank the Minister for that reply. Will those measures reduce the unemployment in Ogmore and in the constituency of my hon. Friend the Member for Bridgend (Mr. Griffiths)? In 1979, total unemployment in the Ogmore constituency, which then included Bridgend, was 3.7 per cent. It is now well over 20 per cent. in my area. In addition, there are long-term unemployed people and they were made unemployed by the actions of the Government since 1979 when they reduced manning in the steel industry and closed seven collieries. What does the Minister propose to do to employ people in my constituency, in Bridgend and throughout Wales?

Mr. Hunt

Of course, our economic policies will bring down unemployment, but there is always a lag between a reduction in inflation, which are now down to 1.7 per cent., and a reduction in interest rates, which is now down to 6 per cent. Even against that background and the background of the present recession, not only in this country but in many others, the Employment Service managed to place 1.4 million unemployed people back into jobs last year. Next year, starting in April, our programme of employment and training opportunities will give almost 1.5 million opportunities for unemployed people, especially those who have been out of work for some time.

Mr. Richards

Will my right hon. Friend confirm that prospects for the long-term unemployed in Ogmore, as elsewhere in the United Kingdom, are infinitely better under this Government than they would be under a Labour Government, especially in the context of the social chapter of the Maastricht treaty? If the Opposition had their way, the social chapter would be included in the treaty and, if implemented, it would drastically affect unemployment in this country.

Mr. Hunt

My hon. Friend is absolutely right. In the past seven years in Wales there has been a substantial reduction£41 per cent.—in the number of long-term unemployed. That represents a fall from 78,000 to 46,000£ a reduction of 32,000. Wales now has record productivity and record manufacturing output. Our message is that Wales will lead the United Kingdom out of recession.

Mr. Ron Davies

The Secretary of State has another record. He has 134,000 unemployed people in Wales and one in three of them is long-term unemployed. The total cost of that unemployment to the Welsh economy is £1.2 billion. Those are the records of reality about which the Secretary of State chooses not to speak. Does not he realise that the time for his con tricks and cosmetics is past? If we are to tackle the problem of the long-term unemployed we need a completely new approach and a strategy that will renew our economy and revitalise our manufacturing sector.

Mr. Hunt

The hon. Gentleman says that we need to revitalise our manufacturing sector. Let us look at the facts. Manufacturing output is 126.3 per cent. compared with 100 per cent. in 1979. It is up by over 25 per cent. The index of production in the United Kingdom over the past year was up by 0.4 per cent. while in Wales it was up by 1.4 per cent. Manufacturing productivity now stands at over £30,000 per employee, which is one of the highest anywhere in the United Kingdom and 6.4 per cent. above the United Kingdom average. When one looks at the facts one sees the answer to the hon. Gentleman. He should start talking up the Welsh economy and then we should certainly see the growth that we need.

Mr. Barry Porter

I congratulate my right hon. and hon. Friends on the steps that they have already taken about employment in Wales. In view of the planning permission for the gas terminal at Point of Ayr, would not it be sensible for employment in Wales and in parts of Merseyside as well if some pressure were put on the Department of Trade and Industry to grant section 36 consent for the Connah's Quay power station? I hope that that will happen very soon.

Mr. Hunt

I recognise that my hon. Friend has been lobbying extremely hard on this subject. As he recognised, it is a matter for my right hon. Friend the President of the Board of Trade because section 36 consent is under his aegis. I shall ensure that my hon. Friend's words are immediately conveyed to my right hon. Friend.

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