Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 12:00 am on 28 March 1974.

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Photo of Mr James Craigen Mr James Craigen , Glasgow Maryhill 12:00, 28 March 1974

I have the privilege of representing the new Maryhill constituency. At the last General Election Glasgow lost two seats as a result of overspill during the past few years, and all of the former Maryhill constituency is now represented in the new constituency. The former constituency was represented ably, diligently and conscientiously for nearly 30 years by Mr. William Hannan. I was not long in the House before I appreciated just how highly respected Mr. Hannan was among hon. Members and House officials.

This Budget is broadly acceptable to my constituents because we are realistic people. We realised that, whatever Budget was produced, it would be a harsh one. We are in a difficult economic situation. But my constituents consider that it is a fair Budget, too, because it tries to tackle some of the social injustices from which we have been suffering for many years.

I want to deal in a little depth with three main topics. In the election all political parties made great play of the plight of pensioners. Maryhill probably has a slightly higher than average proportion of pensioners. I therefore welcome the Government's firm commitment to raise pensions to the levels announced in my right hon. Friend the Chancellor's speech and the speed with which the increases are to come into effect. I welcome the increases in the age exemption limits and I am sure that they will be acceptable to many working pensioners.

We on the Government side have prided ourselves on the social contract that we have been able to achieve with the trade union movement. I believe, however, that we need something like a social contract for pensioners, because the problems do not relate simply to money matters for pensioners. Pensioners are concerned with many social problems, not least housing.

In welcoming the Chancellor's promise to stimulate house building, I hope that the Government will give increased attention to the need to provide additional accommodation for old people. I am constantly coming up against the problem of old people in properties totally inadequate in both condition and size. In the private sector one of our problems in Glasgow is that many properties are 75 to 100 years old and are in need of demolition. Even in the public sector there is the problem that the children of the family have left home and the old people are left on their own in over-sized accommodation.

I should like to say something about the position of young people in our society, particularly unemployed young people. Little was said about them in the General Election campaign. In my constituency many young people leave school with little or no hope of employment or have to take jobs not suitable for their long-term career prospects. Indeed, they do not consider the question of a career. For them it is enough just to find a job. We are spending millions of pounds on education and raising the expectations of young people, and at the end of the day they have no jobs to go to.

We should take very seriously the point made by my right hon. Friend the Chancellor of the Exchequer about the need to use our manpower—and womanpower —more professionally than in the past. Many hon. Members are accountants or are in the world of finance. The rewards and social standing of people in finance have always seemed to me to be unduly high as against the rewards in personnel management or for those engaged in full-time trade union work who are dealing essentially with people. We must take a fresh look at the social balance sheet and decide what matters most. Is it money or is it the people who make up a factory at management and shop floor levels?

Scotland will welcome the Chancellor's intention to continue the regional employment premium beyond September 1974. I should like to think that the Government might extend REP to the public sector. When I look at Scottish industry, it seems that most of the new employment opportunities will have to be provided within the public sector. Only the other day on the Adjournment the House debated the closure of the Scottish Daily Express in the private sector. When I consider Scotland's future, I think that the new employment opportunities will have to come increasingly from public sector investment.

I hope that the Government will initiate an inquiry into the social costs of centralisation in Britain. The hon. Member for Reigate (Mr. Gardiner) dealt at some length with the problems facing people in the South-East. If I may say so, as a visitor to the South-East I readily recognise the difficulties facing people here—high land prices, the problem of finding accommodation, of finding people to work in the social services and so on.

I am concerned also at the demands for increased London weighting. It highlights the problem of centralisation. In the United Kingdom, and in some countries within the European Economic Community, the trend towards centralisation probably has a high inflationary influence. In other words, it helps to push up the cost of living. I should welcome an inquiry into the social costs of centralisation in the United Kingdom.

We have had 40 years of regional policies in Britain. Originally we called it help to the distressed areas. Now we call them development areas. Essentially, however, it has always been ambulance work to bail out the areas where opportunities were limited and which people were having to leave in search of opportunity elsewhere.

I for one welcome the Government's intention not to spend another penny on the Maplin development. I hope that the Channel Tunnel also will prove a nonstarter. Commitment to those two projects would be like adding petrol to the flames of centralisation. I hope that the Government will take a firm line on the problems of the South-East.

I should have welcomed a firmer statement from the Chancellor of the Exchequer about his intentions regarding revenues from North Sea oil. I recognise the difficulties under which he was labouring. Indeed, one has to acknowledge the way in which he overcame those difficulties within three weeks in presenting us with the Budget this week. I look forward to hearing the Government's intentions regarding those oil revenues.

The Budget is an indication of a beginning towards social fairness in Britain. I hope that it will also be a start towards a better distribution of wealth and opportunity within the United Kingdom as a whole, because that can only help areas such as Glasgow and constituencies such as mine.