HC Deb 09 December 1985 vol 88 cc467-8W
Mrs. Renée Short

asked the Secretary of State for the Environment if he will make a statement on the latest consultations which he has been having with representatives of the construction industry in respect of their claims for increased Government financing of the infrastructure.

Mr. John Patten

My ministerial colleagues and I maintain close and frequent contact with the construction industry. Its views are well known to us, including those on the present level of public expenditure on infrastructure. The autumn statement provided, within the Government's overall economic framework, for additional finance in several areas of capital expenditure, including housing, roads, water and the Health Service.

Mr. Parry

asked the Secretary of State for the Environment what plans he has to seek to reduce unemployment in the construction industry; and if he will make a statement.

Mr. Golding

asked the Secretary of State for the Environment what is his latest estimate of the numbers of construction workers unemployed; what plans he has to stimulate the employment of out-of-work construction workers on improving buildings and the environment; and if he will make a statement.

Sir George Young

The latest results from the Department of Employment's labour force survey indicate that in spring 1984 there were about 200,000 people in England and Wales who had had a job in the construction industry within the previous three years and who were then without a paid job and seeking employment. The corresponding figure for 1983 was 230,000.

This suggests that employment in the construction industry is increasing, a trend confirmed by the latest figures available from my Department's housing and construction statistics which show that 24,000 more people were employed in the industry in Great Britain in 1984 than in 1983.

The best way to create long term employment in the construction industry is to keep down public borrowing, thus lowering interest rates and inflation. This will benefit the industry through encouraging business investment and private housing expenditure. At the same time, the annual review of spending announced in the recent autumn statement, provided the opportunity, within our overall economic framework, to reconsider priorities and allow for additional finance in several areas of capital spending, especially housing renovation, roads, water and the Health Service. This should also encourage employment in the construction industry.