HL Deb 30 March 1999 vol 599 cc198-200

11.15 a.m.

Lord Dormand of Easington asked Her Majesty's Government:

Why, as shown by the most recent unemployment figures, unemployment has increased in the Northern Region, while it has decreased in all other regions: and why the figure for the Northern Region remains the highest for all regions except Northern Ireland.

The Minister of State, Department for Education and Employment (Baroness Blackstone)

My Lords, regional differences in unemployment have narrowed in recent years, with the North-East among the regions that have experienced the largest labour market improvements. However, over the past year, sectors on which the North-East is particularly reliant for employment have been particularly affected by worldwide problems. Government help has accordingly been focused on the region, with around 60 per cent. of the total approved expenditure for the Rapid Response Fund having already been allocated to the region.

Lord Dormand of Easington

My Lords, I thank my noble friend for that helpful Answer, but will she accept that my Question is neither a moan nor a grumble and that I appreciate very much indeed what the Government are doing for the region? However, the figures to which the Question refers are peculiar and disappointing. Does not the fact that ever since these figures were first kept the North-East has been the area with the highest unemployment rate suggest that unemployment is endemic in the North-East? Does my noble friend agree that that should be the subject of a short but major investigation by the Government?

Baroness Blackstone

My Lords, I am grateful to my noble friend for his initial comments about what the Government are doing to tackle unemployment in that area and, indeed, elsewhere. We can be perhaps a little more positive about what is happening in the North-East than my noble friend suggests. As I said in my Answer, regional differences in unemployment have narrowed in recent years, with the North-East being among the regions that have experienced the largest labour market improvements. The gap between its current claimant count rate and the national average is down to about three percentage points, which is about half the figure of the mid-1980s. Nevertheless, it is of course important that the Government should continue to monitor what is happening in the region and take further action beyond the special support already given from the Rapid Response Fund, if that is deemed necessary as a result of the monitoring.

Lord Mackay of Ardbrecknish

My Lords, is the Minister aware that her noble friend's Question is not entirely accurate because the most recent figures for Scotland show that, like the North of England, unemployment has grown there in the past year? Is the Minister also aware that the narrowing of which she speaks has been very welcome but that it occurred largely under the last government and as a result of their policies? Now that the policies of this Government are beginning to be triggered, unemployment in Scotland, for example, has risen by 12,000 in the past year and, as the Minister's noble friend said, it has risen also in the North of England. Is not that something to do with the Government's economic policy?

Baroness Blackstone

My Lords, no. The noble Lord, Lord Mackay, is not entirely accurate in the statistics that he has given either, though I accept that there has been some growth in unemployment in Scotland in recent months. Perhaps I can remind the House of the statistics. Since May 1997 UK employment is up by over 500,000 to the highest level since labour force records began and it is continuing to grow. The claimant unemployment rate is down by 324,000 and the ILO unemployment rate is down by 200,000. Moreover, the number of vacancies that have been notified to the Employment Service jobcentres continues to run at an historically high level at 200,000 a month.

Earl Ferrers

My Lords, in view of the disagreement as to what is accurate, perhaps I may add a bit of accuracy. Does the noble Baroness recall that her noble friend Lord Dormand of Easington tabled a Question every month asking what the unemployment figures were? When they went up her noble friend gave the then government stick. As the unemployment figures are going up now, why does her noble friend not give the present Government stick?

Baroness Blackstone

My Lords, it is not true that across the country unemployment figures are going up. If we look across the country as a whole, there has been an increase in the levels of employment.

Lord Ewing of Kirkford

My Lords, perhaps I can continue to give the last government some stick. Is my noble friend aware that the weakness in Scotland was the result of the last government's weak inward investment policies? It attracted continually low-tech jobs which have not stood the test of time and have failed to meet the worldwide recession, particularly in the electronics industry.

Baroness Blackstone

My Lords, I am grateful to my noble friend for those interesting statistics. I am aware that the lack of encouragement to inward investment seriously contributed to the previous government's record in this respect.

Lord Dormand of Easington

My Lords, I am delighted that my exercises in those days are remembered. It is quite right that I tabled a Question every month concerning unemployment. The reason I have not questioned this Government is that it was reasonable to see what this Government would do, and the figures have continually gone down. Perhaps even more important, can my noble friend say what the figures are in relation to the closure of small businesses in the North-East? We all know about the big closures that have taken place, but it would be helpful to hear what is the situation with respect to smaller firms.

Baroness Blackstone

My Lords, I cannot give the precise statistics on closures of small businesses in the North-East. However, we are of course aware that the closure of the Siemens and Fujitsu plants in the North-East caused specific problems. That again is the result of worldwide developments. However, many new jobs have been created in the North-East. Indeed, since this Government came into power, more jobs have been created there than have been lost.