Banking and Financial Services

HC Deb 15 February 1994 vol 237 cc797-8

9. Mr. Raynsford

To ask the Secretary of State for Employment if he will estimate the number of jobs which have been lost in banking and financial services in London over the past four years.

Miss Widdecombe

Figures from the labour force survey show that in the banking, finance and insurance business services in greater London the number in employment has risen by 7,000 since 1989.

Mr. Raynsford

What message has the Minister for the 505 employees of Barclays bank in London whose new year began with a redundancy notice at the very moment when the bank's new chief executive was having his pay doubled to £737,000 a year? What comment has the Minister about that example of corporate ethics or does she believe, like the Prime Minister, that it is no matter for her?

Miss Widdecombe

What is a matter for the hon. Gentleman is giving his constituents hope, which he appears completely unable to do. The House will note that the phraseology of the hon. Gentleman's original question was how many jobs have been lost. Jobs have risen and he did not even have the grace to welcome that. Perhaps he would like to tell his constituents that, with London's share of world trade in financial services increasing to 27 per cent. the financial services sector earned the United Kingdom £4.3 billion and that the employees to whom he refers work in an industry which, even if it is redistributing employment, is nevertheless growing. Why does he not give encouragement to Britain's performance in the financial services sector? Why do not the whole lot of them start encouraging things?

Dr. Spink

Is my hon. Friend aware that employment in London and the south-east has risen by more than 200 in the 10 years since March 1983? Will she confirm that some of the 150,000 places in the new apprenticeship scheme will be available in London?

Miss Widdecombe

Yes, I have pleasure in confirming that. I also have pleasure in confirming that another good sign for young people, apart from the creation of modern apprenticeships, is that the number waiting more than eight weeks for a youth training place has declined from more than 3,000 to just over 300. There are now a large number of TECs with no young people waiting. Modern apprenticeships will help that process even further. Why are modern apprenticeships not being welcomed? [Interruption.] I take it that hon. Members are cheering the Government. Thank you very much.

Mr. Tony Banks

Is the Minister aware that Barclays bank has declared 7,000 redundancies and National Westminster bank has announced 4,000, yet we still have to wait ages at the queue at the bank? Why is that?

Miss Widdecombe

Perhaps the hon. Gentleman should do a competitiveness survey and go somewhere else for his queue. Although there have been job losses in the banking industry in the past year, there have been strongly offsetting rises in insurance and business services. It is generally good news in the financial sector. The hon. Gentleman might pass on that message to those in the queue and to the cashiers.