HL Deb 11 December 1986 vol 482 cc1248-50

3.15 p.m.

Lord Gridley

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what action has been taken to provide work for the unemployed in rural areas.

The Parliamentary Under-Secretary of State, Department of the Environment (Lord Skelmersdale)

My Lords, the Development Commission, whose budget has been increased by almost 20 per cent. since 1983, now provides assistance to over 20,000 firms employing nearly 100,000 people. The farm and countryside initiative, launched jointly by the Ministry of Agriculture, Fisheries and Food, the Development Commission and others in February this year, has made a good start with 60 projects employing 1,163 people, and a further eight projects have so far been approved.

Lastly, under the enterprise allowance scheme over 2,500 people have established businesses in the horticultural and agricultural sectors.

Lord Gridley

My Lords, I thank my noble friend for his Answer and I congratulate the Government on their vision and competence in introducing this scheme. I should like to ask the Minister whether he can confirm that I am correct in thinking that this scheme will greatly assist the long-term unemployed to find employment, and that tourism in this country is likely to benefit, as well as the provision under the Community programme?

Lord Skelmersdale

My Lords, the Development Commission's and COSIRA's various schemes make a major contribution to the provision of permanent jobs in rural areas, through the construction of advance factories, offering advice and assistance to small businesses and giving grants for the conversion of redundant buildings for industrial and other uses. So far as concerns tourism, this is a major method of reducing unemployment and COSIRA helps in this respect also.

Lord Cledwyn of Penrhos

My Lords, would the noble Lord agree that the incipient crisis in the agricultural industry is likely to worsen the employment position in the rural areas very soon? Could the Minister also say whether or not there is any truth in the report that as a result of government policies 10 per cent. to 20 per cent. of farmers in this country could well go out of business over the next 18 months to two years? This statement has been made seriously, and it is as well that the Government should face up to the position now. Therefore, could the Minister say how many people working in agriculture and connected industries are likely to lose employment over the next 12 months as a result of the policies of Her Majesty's Government?

Lord Skelmersdale

My Lords, no; I am afraid I cannot say, because it depends on the development of the agricultural industry within the next 12 months to two years.

Lord Grimond

My Lords, while I appreciate that the Government cannot mention all that has been done in this field, perhaps I may ask whether the Minister will confirm that they are well aware of and are investigating closely the work done by the Highlands and Islands Development Board, which was not mentioned in his Answer and which has wide experience and considerable success in this field and from which many lessons could be learnt in creating rural employment.

Lord Skelmersdale

My Lords, we are aware not only of the Highlands and Islands Development Board but also of the Development Board for Rural Wales, which are both doing extremely good work in this area.

Baroness Seear

My Lords, could the Secretary of State for Employment tell us in what ways from his department rural employment is being encouraged?

Lord Skelmersdale

My Lords, all the schemes in Action for Jobs—that is to say, 15 schemes, with the exception of Jobs Search Travel to Interview Scheme and Career Development Loan Scheme—are applicable to rural areas.

Lord Gisborough

My Lords, would the Minister agree that most of the work of the Development Commission goes into the provision of new factories and workshops in the wealth-producing sector and that this is of great benefit to the local economy? Would the Minister therefore agree that further finance for the Development Commission would be likely to be well spent in job production?

Lord Skelmersdale

My Lords, yes. I must confess that like my noble friend I am a great fan of the Development Commission. That is why, as I said in my original Answer, its budget has been increased by almost 20 per cent. since 1983. In future years we shall obviously have to look at what we can do in that respect.

Baroness Seear

My Lords, in view of the silence of the Secretary of State for Employment do we conclude that his department has nothing to say about rural unemployment?

Lord Skelmersdale

My Lords, I am answering the Question on behalf of the Government. The fact that my noble friend the Secretary of State for Employment happens to be sitting beside me is neither here nor there.

Lord Cledwyn of Penrhos

My Lords, we are dealing with rural employment, which involves agriculture. I assume that the noble Lord can answer questions which involve rural industry. Perhaps I may return to my original question and ask him whether it is the Government's policy to take agricultural land out of production. There may be arguments for or against that connected with the common agricultural policy. It is unfortunate that his noble friend is not answering the question because it is important that the Government should say whether it is their policy to take land out of agricultural production. That would enable Parliament and the country to decide whether or not the policy is a good one.

Lord Skelmersdale

My Lords, it is the Government's policy to reduce surplus food production.

Lord Cledwyn of Penrhos

My Lords, I must come back on that. Is the noble Lord saying that it is government policy to take land which produces food out of commission?

Lord Skelmersdale

My Lords, no. I most carefully did not say that.