HC Deb 18 January 1994 vol 235 cc696-7
8. Mr. Luff

To ask the Secretary of State for Employment what studies his Department has made of the employment implications of inward investment into England.

Mr. David Hunt

Extensive and very positive.

Mr. Luff

If I were to pay tribute to my right hon. Friend's excellent record of attracting inward investment into Wales, would he join me in paying tribute to the inward investment by American, Japanese and European companies in my constituency of Worcester, creating and safeguarding many hundreds of jobs? What estimates does he have of the total number of jobs safeguarded and created in England by inward investment which was largely opposed by the Labour party?

Mr. Hunt

I agree with my hon. Friend. The record on inward investment has been quite spectacular. Since 1979, in the United Kingdom there have been 3,800 projects, involving more than 500,000 jobs—many of them new and safeguarded jobs. They are good jobs and have provided a real local base. As we look forward to the future, let us stop talking down the United Kingdom and England and start talking up the fact that that investment is coming because we have the best work force in the world.

Mr. Cryer

When does the Minister expect the inward investment to allow us to get back to the basic figure of 4.1 per cent. Unemployment—around 1.8 million people—of April 1979 under the last Labour Government?

Mr. Hunt

As I pointed out earlier, that was when we had 7 million people producing as much as 4 million people produce today. It is about time the hon. Gentleman reflected on the fact that British industry was so uncompetitive when we took over in 1979 and we have seen some of the best productivity increases seen anywhere in the world.

Mr. Nicholas Winterton

I warmly welcome the most encouraging statistics that my right hon. Friend has given to the House in answer not only to this question but to others today. Will he accept that my constituency has one of the lowest levels of unemployment in the country, but that the north-west has in recent times encountered one or two serious and unfortunate blows, not least the receivership of Ferranti International—the sonar division of which is based in my constituency—and, more recently, the redundancies at Avro International Aerospace at Woodford on the periphery of my constituency? Will my right hon. Friend explain to the House what assistance he is giving to those two companies and to those being made redundant so as to minimise the adverse effects of those redundancies on them and their families?

Mr. Hunt

I greatly regret the redundancies that have occurred and the incidents to which my hon. Friend referred. Those jobs, certainly the ones recently announced by British Aerospace at Woodford and Chadderton, are part of British Aerospace's overall drive to improve efficiency and reduce costs. Of course there are concerns about the joint venture with Taiwan, but talks with Taiwan are continuing and British Aerospace has made it clear that Avro will continue in business whatever the outcome of those talks. Of course, local training and enterprise councils and the employment service will give the maximum possible assistance to all those who are affected by the closures.