Unemployment (West Midlands)

Part of Opposition Day – in the House of Commons at 6:30 pm on 22 February 1983.

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Photo of Richard Shepherd Richard Shepherd , Aldridge-Brownhills 6:30, 22 February 1983

No one can say that things are well in the west midlands. Hon. Members on both sides of the House have expressed unhappiness and anxiety about the way in which things have turned out. The concern has not been well served by the motion proposed by the Opposition. It is a silly motion, because it is not true. That is perceived by many people in the west midlands, as is evident from poll after poll. The people recognise that something deeply disturbing has happened to the structural arrangements of employment within the west midlands. They know that this goes back many years and that the causes are not easy to remedy rapidly. They do not lay the blame for the long structural decline at the feet of this Government, but they think that certain things might be done to assist recovery.

The observation has been made that we do not always buy cars from manufacturers within the west midlands. It is difficult to direct free people to purchase goods at certain places when there is an open market. To insist upon a certain quota of imported cars or of components assembled here may mean more uneconomic cars. Commercial firms use their judgment to buy as best they can so that their end product is as cheap and competitive as possible. If quotas or special arrangements are sought for a proportion of the car industry it may lead to the further decline of that industry.

All the time in my constituency I am being asked whether we could do more. The answer has to be yes. A tight monetary policy may exacerbate recession. One of the largely unfair criticisms that I hear about the Government is that they do not seem to be sympathetic and that they have ignored some of the problems inherent in the west midlands. That observation was made forcefully to me last Friday by an intelligent convener at one of my most important factories. If the Government could demonstrate a more positive and perhaps more sympathetic approach, it would be much appreciated.

This is happening to some extent. In Walsall we are delighted that at long last we have become a designated district. There is much evidence that we should have designated long ago.

Almost every hon. Member has referred to the rating problem. My hon. Friend the Member for Lichfield and Tamworth (Mr. Heddle) has harassed the Government about void rating. Because of its inheritance through mismanagement by a former Left-wing Socialist council, Walsall has an awful problem about how to reallocate its resources. If it were to lift the burden on industrial premises it would have to impose a great burden on domestic ratepayers, which would be invidious In the rating area of the West Midlands county council much work has been done by the west midlands ratepayers federation, which is representative of all political parties. It is alarmed about the spending policies of West Midlands county council. The chairman of the ratepayers federation, Tony Jarvis, who is a resident of Aldridge, has ably pursued this issue. There would be wide common cause to abolish West Midlands county council. The Government should give serious consideration to that proposition.

In regard to investment, the convener who I saw last Friday argued strongly that the position in his company had been brought about by a lack of investment in good years. That reflects all too often the pattern of investment, particularly in firms which have grown from family firms into larger concerns. In good years they did not return to their factories the investment that they should have done. That has rendered us less competitive. There is a good work force and good labour relations. Labour relations have improved since 1980. There is also much tougher management. But industry is using equipment that is grotesquely out of date in some instances, which puts it at a severe disadvantage in comparison with its competitors. Therefore, I urge the Government to look favourably at proposals for new investment in capital and equipment under the industrial legislation.

Energy cost have been touched upon by most hon. Members, as they are in many of these debates. We have not yet got energy costs right. We are still at a disadvantage. I urge the Government to do what they can about energy costs.

My right hon. Friend the Member for Stafford and Stone (Sir H. Fraser) referred to dumping. The inequality of tariff arrangements such as those that operate in Spain are intolerable and unacceptable. People do not understand why the Government are not moving faster on that score.

A working party is examining the idea of free ports. I have some knowledge of the success and tremendous stimulation to the economy of southern Florida resulting from free port status for Miami. I understand that the Government are thinking of coastal or near coastal towns. There would be a tremendous boost to the west midlands' economy if a free port were sited there, perhaps at the west midlands airport. This would enable us to process and forward goods through our region instead of their being dealt with in what we regard as more peripheral parts of the United Kingdom.

If the question is raised whether there is hope, certainly there is, and there are signs of it already. I am glad that the pound has settled at its present level. I should not mind if it were a little lower. Some people say that is a short-term argument, but it is an observable fact—a loathsome expression—that with a lower pound the demand for sterling-priced exports grows in dollar terms. Therefore, we see small signs of an increase in United States dollar orders. Because of the decline of the pound against the mark, there is also an increase in my constituency of German orders. I am sure that the same thing is happening throughout the economy.