Orders of the Day — Unemployment

Part of the debate – in the House of Commons at 12:00 am on 24 July 1978.

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Photo of Mr Ivan Lawrence Mr Ivan Lawrence , Burton 12:00, 24 July 1978

No. The hon. Gentleman has had his turn, and other hon. Members want to speak. We have had from the hon. Gentleman the persistence of the myth that we want more public expenditure, the implication being that we want more overall public expenditure. We do not want an increase in overall public expenditure. We want a decrease in overall public expenditure, but we are prepared to have some increase in some sectors of public expenditure.

For example, we can cut back on overall public expenditure by reducing some of the wasteful schemes proposed for nationalisation and continuing housing subsidies. If we want to spend more money on the police, that is in order to reduce crime, which is an extraordinary expense for the nation. If we want to spend more money on defence, we shall spend less on social security and unemployment benefits for those who will have jobs. So let hon. Members not continue to be so obtuse about it.

Then there is the preoccupation among hon. Members on the Government Benches with the myth that cuts in public expenditure do not help employment. They do. My right hon. Friends have explained time and again how allowing for tax cuts generates enterprise, investment and jobs. Let me give the hon. Member for Walton and his hon. Friends an example of how it has worked here in Britain and recently. In his opening speech today, the Minister said proudly that the Government had reversed the trend of increasing joblessness over the past several months. How did that happen? It did not happen as a result of more subsidies, more defence cuts, or more Socialism. It happened because the International Monetary Fund forced public expenditure cuts on the Government, which enabled the Government to ease off on some of their borrowing. The pound therefore became steadier, the rate of inflation came down, and growth rose slightly. That is what has happened. It has helped to redress some of the appalling imbalance of unemployment in this country, and the cuts have not had anything like the damaging effect on jobs which hon. Members opposite have been forecasting.

We have had a repeat appearance of the myth that to increase productivity necessarily means a loss of jobs. Again, I shall not repeat the arguments, which have been put daily from the Opposition Benches, showing that increased productivity is the only way to revitalise industry, but I draw attention to a study reported in the May 1978 issue of the Department of Employment Gazette, which shows that the 10 industries experiencing the highest growth in productivity over the past 30 years have all provided extra jobs. Moreover, the CBI has shown in its studies that times of increasing growth in the domestic product have also been times of increasing jobs.

We all want to improve the situation. A good deal of discussion of an ecumenical nature, on which both sides of the House can agree, has taken place in the debate today. All of us understand the tragedy of unemployment and the effect that it has on the social fabric and on the crime wave, in particular. But to repeat ad nauseam the myths invented about Conservative policy will not reduce the level of unemployment. Returning to office a Government who have totally failed to provide jobs and who promise only more Socialism will not reduce the level of unemployment. Surely, it must be clear to everyone that only with the resurgence of confidence which will come with the return of a Conservative Government will this nation stand even a chance of getting Britain back to work.