THE EMPLOYMENT SITUATION (Hansard, 18 February 1958)

§ VISCOUNT ALEXANDER OF HILLSBOROUGH
My Lords, I beg to ask the Question which stands in my name on the Order Paper.

§ THE MINISTER WITHOUT PORTFOLIO (LORD MANCROFT)
My Lords, any fall in activity in the United States of America is bound to have an effect on the level of world trade, and thus could affect our exports generally. But the level of employment in this country depends on the level of total demand, of which exports are only one component. The Government will continue to watch the situation closely. The figure of registered unemployed in January was 764 only 1.8 per cent. of insured employees. I am advised that the balance of the National Insurance Fund at the end of the last financial year was about £350 million.

§ VISCOUNT ALEXANDER OF HILLSBOROUGH
My Lords, is the noble Lord aware of the grievous experience of this country in the years 1929 to 1931 as a result of the great recession then, in peace time, in the United States, and what dire effect it had upon us? Is he aware, also, that at the present time their unemployment runs to 5.8 per cent. of their immense population; that steel production there at the moment is no more than 55 per cent. of their normal, and that they are going into new ventures for cheap money to try to restore the position? With regard to the home situation, it may be that the overall percentage of unemployed for the United Kingdom is 1.8, but has the noble Lord seen the statement in The Times to-day: that in Scotland it has reached the highest figure for a long time, 70,000, which represents something like 3.6 per cent. of the insured population? Is he aware, too, of certain representations made by some localities concerning the little being done for them to deal with the severe unemployment in their districts?

§ LORD MANCROFT
My Lords, I am aware of all those facts. I am aware that there are certain black spots in this country, in Scotland, in particular, and in certain parts of North Wales, which have been occupying the particular interest of my noble friend Lord Brecon. Her Majesty's Government are well aware of these black spots and are doing their best to meet these difficult conditions. I would remind the noble Viscount of some remarks of President Eisenhower on February 12. He said: I am convinced that we are not facing a prolonged downswing in activity. Every indication is that March will commence to see the start of a pick-up in job numbers, and this should mark the beginning of the end of the downturn in our economy. That was the President's statement, and I am sure we all echo those sentiments.

§ VISCOUNT ALEXANDER OF HILLSBOROUGH
My Lords, it sounded to me, when I read that speech, as if the President was whistling to keep up the people's courage generally, and that there was not much more in it than that. May 765 I ask for a more detailed answer to the second part of my Question: whether the Government have made, or are making, plans for providing alternative employment? If the noble Lord and his colleagues are aware of the serious effect that almost must come in this country as a result of a great recession in America, what are their plans to provide alternative employment in this country?

§ LORD MANCROFT
My Lords, I think the noble Viscount takes too gloomy a view. I fully agree with the implication in his question, that plans should be made, and, as I have said, the Government are watching this matter carefully. The detailed plans are obviously too complex to be given across the table in question and answer. Should the noble Viscount wish to know more about the plans, he will no doubt put down a Question. I would again reassure him that the Government view this matter as seriously as he does.

§ VISCOUNT ALEXANDER OF HILLSBOROUGH
My Lords, I am obliged to the noble Lord. I will look carefully at what he has said, and perhaps put down other Questions. I do beg, on this great issue, that the Government will be careful not to be doing too little, too late.

VISCOUNT ELIBANK
My Lords, may I ask whether the noble Lord is aware that one of the best ways of helping the black spots would be to do everything possible to increase trade with China?