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8.57 pm

Mrs. Elizabeth Peacock (Batley and Spen): I welcome the opportunity to say a few words in this important debate instigated by the Opposition, but I am a little surprised that only three of their Back-Bench Members are present for it.

Mr. Meacher: Only three Conservative Members are present.

Mrs. Peacock: It is the Opposition's debate.

I have always supported training and education from whomever and wherever it came. In the late 1970s and early 1980s, there were the job opportunities and community programmes. They were mostly then, as perhaps now, organised by the voluntary sector, usually councils for voluntary service. What a difference that made to setting young people, in particular, on the path to a job. Many more opportunities are now available to help people back into work.

I was intrigued by the Leader of the Opposition's reference to stakeholders. I wonder whether he travelled through Romania on his way back from Singapore, visiting Dracula's castle at Bran. I believe that he is the stakeholder whom most people know best. I am not sure that it has much relevance to our modern-day society.

Special help is available for the unemployed, in particular for those unemployed for longer than six months. There are job clubs, training for work, job interview guarantee schemes and work trials. They are all designed to help unemployed people with different needs. It is well recognised that there cannot be a universal programme for everyone seeking work.

Work trials enable unemployed people to try out a job for up to three weeks, giving them the opportunity to show employers what they can do and giving employers the opportunity to see whether people's skills are appropriate for the job that they are offering. That will ensure that many more round pegs go into round holes, rather than the mismatching that we have had in the past.

Restart courses help those who have been unemployed for two years. The jobfinder's grant covers additional expenses. That is most important because many unemployed people need such help, particularly after a long period of unemployment. There is also help for the short-term unemployed. We have already heard how important it is to help the short-term unemployed, to prevent them becoming the long-term unemployed. Job search seminars give practical advice to people unemployed for more than 13 weeks. The travel-to-interview scheme pays the cost of travel to interviews away from an applicant's immediate home area.

We have already heard of the many investors in people schemes. That must be good. Many of my manufacturers realise the importance of their work force and the training that they give them and they wish to retain that trained skilled work force. They put huge amounts of time, effort and money into those schemes.

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We also have training and enterprise councils, although I am sometimes a little concerned about them. They have rather palatial offices with many jobs and I am not entirely convinced that they are creating as many jobs outside as I would wish them to do. My hon. Friend the Minister might like to say a word or two on that. Any unemployment is unacceptable and I am delighted to see the reductions in the number of people unemployed since 1992. We now have 733,000 fewer people unemployed since that date.

When I became a Member of Parliament in 1983, there were 1,900 long-term unemployed in my constituency. That figure has now been halved. It is still too many, but it is always moving as some people become unemployed and others return to work, and it is moving in the right direction. Unemployment in my constituency now stands at 6.7 per cent., much less than in 1983.

Unemployment has fallen in the past 27 consecutive months, and we must all welcome that. It is also interesting to note that youth unemployment in July 1995 was 24 per cent. lower than that in January 1993. European Commission figures show that the United Kingdom has more people in employment and fewer people out of work than any other major European country. It is right that that should be well documented.

The community action programme was established in 1993 when the number of long-term unemployed was 28 per cent. higher than it is now. I understood that it was introduced for one year only and then extended. As I have already said, the public sector provides a considerable number and range of opportunities to help young and unemployed people.

Our own industries also provide training for their work forces. The Confederation of British Wool Textiles has a first-class successful training scheme, not just for young people but for people of all ages within its work force. That has produced many more NVQ and other qualifications in recent years. That is most welcome.

As the House will be aware, from April 1996, incentives for employers to take on someone who has been out of work for two years or more will be extended. Employers will be able to claim a full rebate of such people's national insurance contributions for up to 12 months. That will help many people back into work. It is suggested that the figure could be as much as 120,000--I would certainly welcome that.

Another measure that I have long wanted to see is that, from April 1996, full housing benefit will be extended for four weeks to people going back to work. All hon. Members have had cases where someone has been out of work, has had help with housing benefit, has got a job on Monday the first and has not been paid until Monday the 31st. How do such people manage during that period? We have a responsibility to help them take that job, but not be penalised by having one month's arrears of rent or mortgage at the end of that period. I welcome that measure whole-heartedly.

It is interesting that we are told that there are not very many jobs, yet the Yorkshire Evening Post, Yorkshire's daily newspaper, regularly has a billboard saying, "500 jobs today" or "600 jobs advertised today", so some jobs are available. I know someone who recently came back from Australia, having been there for 20 years, with no income--practically nothing. Within a week, however,

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he had found himself a job, which was interesting. He did not know the system, but he went out, spent a week looking, and got a job.

Since coming to the House in 1983, I have taken a great interest in employment, investment, education and training, because they are closely linked. They are essential to UK plc's future and especially to our manufacturing industry, of which we have much in West Yorkshire.

As I have said, during the 1980s, manufacturing investment enabled us to achieve huge reductions in unemployment in my constituency of Batley and Spen. Between November 1986 and November 1987, unemployment dropped by 19 per cent. Between 1987 and 1988, it dropped by 27 per cent. and between 1988 and 1989, it dropped by 22 per cent. In the early 1990s, unemployment dropped by 13 and 5 per cent.

For the people involved, however, unemployment is individual. It is a traumatic time in their lives. They are not just a statistic. For them and their families, it means much heartache and grief about how they are going to manage, and the whole family suffers. Sometimes we become carried away with statistics and forget that we are speaking about individuals and their families, and we forget what a traumatic time it is for them.

In Yorkshire, there has been massive investment in industries. In my constituency, since 1984, well over £200 million has been invested in jobs, new processes, new technology, new factories--which are there for everyone to see--and of course training because what manufacturing company wants to invest a huge amount of money in a new factory, new technology and new equipment and then not bother with the work force? Many manufacturers say to me that the most important part of their business is their work force, because, without it, many of the machines, however clever, would not operate--of course, they realise that. If we had not invested in training, we would not be able to manufacture and export our high-quality goods around the world.

The hon. Member for Sheffield, Brightside (Mr. Blunkett) insulted all people who have invested money in businesses. Suggesting that the only investment in the United Kingdom is in burger bars is outrageous. He should think carefully before making such a sweeping statement, especially as, if he went a little further around Yorkshire with some of his colleagues, he would see evidence of continuing massive investment.

We need to continue with training and education, but they must start in our schools, and continue with programmes and in our industries. We do not need to lecture industries about that. They know that and are already doing that work. The money that they have put into the investors in people schemes is a prime example. However, we also need to have retraining for people who become unemployed. Although everyone would mourn the loss of any scheme that comes for a short time and goes, the whole jigsaw of training, work and people is continually moving and, unless our response by way of programmes to that movement is continual, we shall become static and not gain the benefit.

In his winding-up speech, perhaps my hon. Friend the Minister will say a word or two about how he sees the future of the TECs and encourage them to consider their budgets a little and to push a little more of that money into people's training.

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9.9 pm

Mr. Gerry Sutcliffe (Bradford, South): We all agree that this is an important debate; but we are discussing real, damaging cuts--not imaginary cuts--and I am staggered by the complacency of Conservative Members. Hearing the Prime Minister and the Chancellor of the Exchequer wax lyrical about the enterprise culture, describing Britain as the enterprise capital of Europe, we can understand why the Tories are so far behind in the opinion polls: the simple reason is that they do not live in the real world inhabited by my constituents and by the majority of British people and their families.

The millions who are in work fear redundancy because companies have not invested in new technology, research and design and re-skilling programmes. Many parents would have been angered by the debate; they do not know what future their children have and whether they will make their way in the world. If there are no jobs, those children will have no prospects. As for the people who are unfortunate enough to be unemployed, they are confined to seeking temporary or part-time work involving low pay and long hours because of their lack of skills. That is a disgrace.

I do not believe there is such a thing as a one-nation Tory. Tories do not believe in society; they believe only in the development of the individual, and in a system based on greed, in which the big pussies can have fat pay cheques while the unemployed suffer cuts in benefit. The Tories have ceased to develop training programmes, and are attempting to create the illusion that everything is all right.

What is the Government's real motive for cutting training budgets? Could it be part of their economic strategy to keep a permanent pool of unemployed people to act as a stimulus to a low-wage economy? That is the Government's vision of Britain: they want to retain a divided society, so that they can claim some imagined success. Belatedly, some remorse has been shown by, in particular, the Deputy Prime Minister, who has called for a job skills audit. He has finally realised that Britain is slipping in the world prosperity league.

An alternative title for today's debate might be "The Waste of a Nation". The £20 billion that has been spent to keep people out of work could have been used to create real, permanent jobs. Every successful economy knows that, if success is to be maintained, there must be a structured and dynamic training and employment programme rather than stop-start schemes that merely massage the unemployment figures. There have been 32 changes in those figures. Even I could make unemployment apparently fall if I changed the calculation involved.


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