Finance Bill

HC Deb 18 April 1996 vol 275 cc834-5

9. Mr. Jim Cunningham

To ask the Chancellor of the Exchequer what assessment he has made of the impact of the Finance Bill on job security. [24317]

Mr. Heathcoat-Amory

Government policy is to promote a climate for high living standards and employment growth. Yesterday's unemployment figures, which showed a fall of 25,700, demonstrate our success in achieving this. The Finance Bill contributes to job security because it allows people in work to keep more of what they earn and lowers the tax burden on employers.

Mr. Cunningham

Will the Minister confirm that 42 per cent. of those in employment are in temporary jobs and, at the same time, that the number of permanent jobs is dropping?

Mr. Heathcoat-Amory

There is nothing shameful about part-time work. The labour force survey shows that the great majority of those in part-time work like it because it suits their lives and because, very often, they are bringing up children. The hon. Gentleman, who clearly believes that the only real job is full-time, permanent, male employment in a heavy industry, has been overtaken by modern patterns of employment. The important thing is that we have more people in work than any other major European country and that unemployment has been falling year after year.

Mr. Anthony Coombs

Does my right hon. Friend agree that what most improves job security is to see unemployment go down by 800,000, as it has over the past two years, decreasing by 25,000 in the last month alone? Has he noticed the recent report of the independent Employment Policy Institute, which stated that the minimum wage would wreck job prospects in the economy as a whole and would have an unduly bad effect on smaller companies, which account for the vast majority of job creation?

Mr. Heathcoat-Amory

My hon. Friend is quite right. The first security that people look for is a job and we are providing those jobs. The second security comes from keeping more of what they earn and save, and we are providing that too. On the issue of over-regulation and red tape costing employment, the evidence is here for all to see. Unemployment is falling in this country, but it is going up in European countries that have an over-rigid labour market.

Ms Primarolo

Does the Minister agree that security is also based on a belief that one will keep one's job and that half the work force now feel insecure in their job? Like the electorate in South-East Staffordshire, they do not believe the Government when they say that the economy is coming right. Can the Minister explain why those workers continue to feel insecure and what impact it is having on the economy?

Mr. Heathcoat-Amory

I have explained to the hon. Lady that security comes from rising employment, falling unemployment and reducing taxes so that people can keep more of the fruits of their labour. We are providing all those things.