HC Deb 26 February 1998 vol 307 cc484-5
7. Mr. Wigley

What steps he plans to take to reduce regional disparities in unemployment levels. [29884]

Mr. Andrew Smith

Notwithstanding welcome falls in the overall level of unemployment and, indeed, some narrowing of regional disparities, we recognise the deep-seated problems in Wales, notably in the valleys and rural areas. That is why we are proposing an expanded role for the Welsh Development Agency—which will work with the national assembly—and the initiatives in the new deal, such as employment zones and regional selective assistance.

Mr. Wigley

Does the Minister accept that my constituency has the highest unemployment rate—9.4 per cent.—in Wales, but does not have full development area status? Is not it time to consider the panoply of tools that are available to the Government—to the Department for Education and Employment and to the Department of Trade and Industry—to ensure that all avenues are explored in order to bring down these unacceptably high levels of unemployment?

Mr. Smith

Indeed, which is one of the reasons why we set up prototype employment zones—the one in Wales includes the right hon. Gentleman's constituency—to explore new ways in which to pool existing streams of funding and to harness local community effort from the bottom up, in partnership with the Government's wider approach. We are doing that precisely to generate jobs, to enhance employability and to give hope to those of the right hon. Gentleman's constituents who are in long-term unemployment.

Ms Moran

I am pleased to hear my right hon. Friend welcome the prototype employment zones. Will he join me in welcoming an initiative that will tackle the severe problems of the long-term unemployed in areas of persistence and long-standing unemployment? Will he consider extending the initiative to areas such as my constituency in central Luton? Does he agree that focusing on local problems and local need is infinitely more effective than the standardised schemes that were the legacy of the previous Government?

Mr. Smith

Yes, indeed. Partnership and the bottom-up approach are integral parts of the new deal, which will benefit the older and longer-term unemployed as much as the young unemployed. Partnership with business, local councils, the voluntary sector and environmental groups will bring real hope to those who suffer the legacy of the failed policies of the previous Government.

Mr. Nicholas Winterton

While I recognise the problems in the Caernarfon constituency, which are always ably articulated by the right hon. Member for Caernarfon (Mr. Wigley), will the Minister give me an assurance that the Government have no proposals, under the new deal or anything else, that will damage the prospects of areas with low levels of unemployment such as my constituency of Macclesfield, which has about 2.2 per cent. unemployment?

Mr. Smith

Indeed not. Under the new deal, help goes to the individual, so unemployed people in the hon. Gentleman's constituency will receive help in the same way as unemployed people elsewhere. The particular focus of the new deal on enhancing employability and equipping people with skills means that it will be good for the wider community and the young long-term unemployed in the hon. Gentleman's constituency, and good for business.