HL Deb 18 April 1994 vol 554 cc5-6

2.48 p.m.

Baroness Turner of Camden asked Her Majesty's Government:

Whether they have considered the possible effect on general employment of the cuts envisaged in the current Design Council review.

The Minister of State, Department of Trade and Industry (Lord Strathclyde)

My Lords, the Government recognise that the changes to the Design Council's activities announced last month will involve reductions in the number of staff employed by the council. However, by improving the availability of design services through Business Links, the competitiveness of British companies should be improved. Overall, I would expect the impact on employment arising from these changes to be positive.

Baroness Turner of Camden

My Lords, I thank the Minister for that Answer. Is he not aware that the Design Council has a very worthy tradition of advice to industry on product design and development process, which largely determines its ability to become competitive? If it is not competitive and cannot perform in the market place, there will obviously be more unemployment. Hence my Question referred to "general employment". I also note the noble Lord's reference to unemployment among the design staff. I gather that about 200 people may be considered redundant. If that is so, does the Minister agree that it is a pity to dispense with the services of people who have some expertise in these areas?

Lord Strathclyde

My Lords, I entirely share the noble Baroness's concern about our competitiveness. That is why we have accepted the report of the chairman of the Design Council, Mr. John Sorrell. Its aim is to improve our overall competitiveness and to make sure that the design services provided to local industry, either by the Design Council or by the new network of Business Links, are of exactly the right quality. On the possibility of redundancies, we believe that, with a new national network of Business Links providing design services, a great deal of those redundancies may well be mopped up.

Lord McCarthy

My Lords, is the Minister aware that his Answer is unsatisfactory largely because he has not really said whether the Government believe that the functions of the Design Council should continue to be carried out? If they should be, then the Minister must admit that what the Government are putting in place of the Design Council is cheaper, smaller, not yet in place and will not carry out those functions ?

Lord Strathclyde

My Lords, I suspect that the noble Lord, Lord McCarthy, has not read the report issued by the chairman of the Design Council. I believe that there is a copy in the Library. If the noble Lord reads it, he will find that what is envisaged is a new and slimmer version of the Design Council which will be far more active in dealing with some of the problems of design and particularly in bridging the gap between design organisations and British industry.

Baroness Turner of Camden

My Lords, is the Minister aware that the staff who work for the Design Council, many of whom are members of my own union, do not share the view which he expresses about the future of the service? I believe that he has undertaken to meet a delegation from that union. Will he undertake to let me know what happens as a result of that meeting?

Lord Strathclyde

My Lords, the noble Baroness is right. I have agreed to meet a delegation from the union and I shall be delighted to do so. I shall certainly write to the noble Baroness when I have had that meeting.