Orders of the Day — Unemployment and the Economy

House of Commons debates, 10 November 1982, 6:30 pm

Photo of Mr John Spellar

Mr John Spellar (Birmingham, Northfield)

It is usual in maiden speeches to refer to one's predecessor. That is especially poignant for me because of the tragic circumstances that led to my election to the House. My predecessor, Mr. Jocelyn Cadbury, was highly regarded in his constituency and, as I have found since I came to the House, by all hon. Members. He was admired for his hard work and dedication, and for his lively interest in both industrial and social issues. As a member of the Cadbury family, he carried on the tradition of concern for the welfare of his constituents and those who work for his company. I know that the disastrous worsening of conditions for his constituents was of great concern to him, and that that concern was reciprocated by his constituents.

My constituency in the south-west of Birmingham has grown substantially during the past few years in both private and municipal housing. Indeed, it is now the largest constituency in Birmingham and, until this year, one of its wards had more than 35,000 electors—a measure of its growth. It is not an area of the traditional thousand trades, although many of my constituents work in those industries, travelling to the city or the black country. It consists mainly of large-scale manufacturing plants. Cadbury's Bournville plant in the neighbouring constituency of Birmingham, Selly Oak employs a considerable number of my constituents. The Kalamazoo business system plant is moving into a new area of electronic manufacture.

The constituency is best known for the British Leyland Longbridge plant. The position there during the past three years has, in many ways, highlighted what has happened to employment in Birmingham. When my predecessor made his maiden speech in the House, he said: the largest employer in Northfield is the giant British Leyland works at Longbridge, which employs about 19,000 people."—[Official Report, 18 June 1979; Vol. 968, c. 986.] Today, the plant employs only 10,000 people and even their future is threatened.

For many years that plant provided the basis for the prosperity of the area—it was part of what was once known as the "golden triangle". Even in the 1930s people flocked to Birmingham from depressed areas—indeed, from your area of Wales, Mr. Speaker—to find work in the Longbridge car plant and the industries dependent upon it. That area, and my constituency, are no longer part of the "golden triangle".

Unemployment in Birmingham is 18 per cent. Statistics from the Northfield jobcentre in 1979 showed that unemployment was less than 4,000—it is now more than 10,000. The Northfield citizens advice bureau has shown the largest increase nationally in cases during the past year. Unemployment is higher than in Glasgow, Swansea, Port Talbot and many other traditional black spots. Youth unemployment stands at a horrific level. It is estimated that in September only one in 10 school leavers in Birmingham found work. Yet that area and the industries operating within it were once highly prosperous. A month ago the West Midlands chamber of commerce conducted a survey of firms in the area. Only one in eight is working at full capacity, with all the obvious implications for productivity and competitiveness, the need for which has been stressed during the debate. About threequarters of the firms said that their trading position was worse this year than last year—yet it is the traditional industrial manufacturing heartland of Britain.

Neither in the Queen's Speech, nor in any speech on the Address—especially last night's speech by the Secretary of State for Employment—have I seen any sign of any realisation of the disaster that is hitting British manufacturing industry. I may be a new Member, but I must say that the superficial nature of the speech of the Secretary of State for Employment was amazing in the light of the many difficulties being faced in Britain. We heard repeated references to the Morning Star and Tribune. Perhaps we would be better served if the right hon. Gentleman spent more time reading the Department of Employment Gazette and the Financial Times, rather than searching for cheap political points. I found no reassurance in his speech, nor in the more developed speech of the Chancellor of the Exchequer this afternoon. The manufacturing areas of Britain are concerned that the recent speech of the Minister of State, Treasury, the hon. Member for Maldon (Mr. Wakeham) proved that the Government want Britain to move out of manufacturing industries into service industries. That is the true feeling of the Government and the Civil Service. It is of great concern to the people of Birmingham, who are so dependent on manufacturing industry, especially the motor car industry.

My predecessor, in his maiden speech, asked Ministers to remember that the British motor industry needed time to recover its strength. He said: It is still the lifeblood of the Midlands. Its collapse would leave Birmingham an industrial desert and the effect on the nation's balance of payments would be catastrophic".—[Official Report, 18 June 1979; Vol. 968, c. 987.] I wish to reiterate that message today. The collapse of the motor and engineering industries would have a catastrophic effect on the economic, industrial and social life of Britain.

When I spoke to my constituents both during my campaign and subsequently, I realised that the major fear hanging over the West Midlands was that there would be a collapse in manufacturing industry. They fear the breakup of British Leyland and the closure of Longbridge, with the consequential disappearance of the engineering industry. They fear that the Government have written off any interest in manufacturing industry. The speeches in this debate have not given the reassurance that my constituents need. I hope, therefore, that the message that I have brought from them to the House will receive attention. I thank the House for its courtesy in listening to me.

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