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12.6 pm
Mr. Roy Beggs (East Antrim): Improved cross-border transport and the development of cross-border business and trade are often projected as a means of reducing unemployment in Northern Ireland, but the benefits that will flow to the Province as a whole, and to the Irish Republic, by upgrading the Larne-Belfast road do not receive the emphasis and attention that they merit.
We resent the political decision made some time ago to pour money into the Belfast-Dublin road. That is traversed by only 8,500 vehicles daily compared with 16,000 vehicles through Larne. Last year, 1.9 million passengers travelled through the port of Larne. Cars, caravans and freight transport increased. The relocation of Sealink from Larne to Belfast has not had the dramatic impact that some predicted. That has been largely compensated for by the introduction of additional ferries by P and O.
It is frustrating that higher priority should not have been given to the A8. We do not accept the most recent fudge of all--a suggestion that the Department of the Environment will look into providing passing opportunities along the road. The Secretary of State for Northern Ireland must secure the funding necessary to extend the existing dual carriageway from Gingles corner. That was promised to start in 1997. At the very least,we should complete the dualling to Ballynure where the road diverges and traffic moves towards the airport and county Antrim. It is significant that Corr's corner was the chosen location for Hualon, which may still produce up to 2,000 jobs for us.
I am impressed by the work that has been done by the Select Committee on Northern Ireland Affairs. Its report on employment creation highlighted problems and difficulties but identified the positive advantages for foreign investment in Northern Ireland. The Committee's visit to South Korea was constructive and identified why Northern Ireland is attractive to foreign investors.We must continue to highlight the matters that it identified.
The use of Korean nationals as representatives for the IDB in Seoul has proved itself, and perhaps similar use of foreign nationals should be made elsewhere. The staff there were identified as being very competent. Northern Ireland was perceived by Korean firms as being a good place to invest because of the excellence of the work force and the benefits of close links with the United Kingdom and, indeed, with the European Union, where there are opportunities to market. There are 50 million people in the United Kingdom and 350 million in the European Union, whereas the Irish Republic market is limited to some3.5 million.
The welcome that is given to overseas people by people from all sections of the community in Northern Ireland was recognised as very genuine, warm and welcoming. Praise was heaped on the IDB for the aftercare provided to new companies, ensuring that there were suitable facilities for their personnel, their workers, and, above all, for the excellence of our education system, with opportunity for the children of those who remain permanently to move on to our excellent universities. The success of South Korean companies in Northern Ireland has opened up a path for other Korean companies to follow. They heard the good news by word of mouth.
Mr. Eric Illsley (Barnsley, Central):
On behalf of the Opposition, I should like to associate myself with the remarks made about the late James Kilfedder.
I congratulate my hon. Friend the Member for Hammersmith (Mr. Soley) and the members of his Committee on an excellent report, and I add my welcome to it. I also welcome the comments made by my hon. Friend the Member for Redcar (Ms Mowlam), who has said that the report highlights the crucial need to free unemployed people from poverty traps by easing the transition from welfare into work.
The report is concerned about the level of bureaucracy and lack of openness and co-ordination in Government Departments. It seeks new measures to help Northern Ireland's businesses to develop, market and export their products. It sees the advantages of ensuring that all three and four-year-olds have access to quality nursery education, and it calls for better targeting and monitoring of public expenditure.
There is little time for me to respond to many of the comments made in the report, and I am sorry that some hon. Members have not been called to speak in the debate: given the issues involved in the report, a much longer period is needed to do justice to it.
I shall comment on the rationale behind the report itself: the high unemployment in Northern Ireland, especially long-term unemployment. I appreciate that unemployment is at its lowest level for 14 years, at about 11.4 per cent. The key factor, however, is that some55 or 56 per cent. of Northern Ireland's unemployed are long-term unemployed--that is, longer than one year--and 23 per cent. of them have been out of work for more than three years.
As a number of hon. Members have said, qualifications are crucial. We are told by the Government that unfilled vacancies are at record levels in Northern Ireland. I take on board the comments that have been made about part-time working, and I shall speak in a moment about benefit traps, but it is obvious that measures should be taken to bring the long-term unemployed back into employment. One such measure is the action for community employment programme. The right hon. Member for Strangford (Mr. Taylor) referred to all-party opposition to the cuts in ACE, and I add my voice to that.
The report reflects on some of the criticisms of the ACE programme: it is short term; jobs last for only one year; the employment offered is sometimes low grade; and it has a limited training aspect. But the programme did address the problem of the long-term unemployed, which makes it all the more surprising that the Government have decided to cut it by some £12.5 million and implement cuts of between 20 per cent. and 40 per cent., despite the fact that the community work programme, which the Government hope will replace the ACE programme, is still only a pilot in three areas. Cuts to the ACE
programme will displace 3,000 placement jobs for the long-term unemployed, and 200 permanent management jobs.
The Government argue that the CWP is a better approach as jobs are for a longer period--three years--and it has an enhanced training element. I remind the Minister that it is a pilot scheme, but the cuts in ACE are happening now. Community programme schemes are chosen according to whether unemployment in a particular area is high, whereas the ACE programme takes a proportion of long-term unemployed in each district, so assistance is spread more widely in the ACE programme. A number of people are on record as complimenting the ACE programme on its success. The Training and Employment Agency is on record as saying that it believes that the ACE programme is one of its most successful.
It has been mentioned that some of the cuts are disproportionate. For example, job placement for the Ulster wildlife trust amounts to 38 per cent., despite the fact that 51 per cent. of participants go on to full-time employment or education. That compares favourably with any training scheme, whether it be in Great Britain or in Northern Ireland. In my constituency, training schemes deliver full-time jobs to some 30 per cent. of people who complete the courses. I suggest that the Government reconsider the cuts, particularly the targeting of resources.
The report highlights the fact that job creation in Northern Ireland is above the average of the United Kingdom or the European Union, yet there is a record number of unfilled vacancies. The right hon. Member for Strangford referred to the high birth rate in Northern Ireland, and the report gives that as a reason why Northern Ireland must achieve a high rate of economic growth, and fill the vacancies.
There is also a benefit culture in Northern Ireland, whereby people will not move from benefit to employment and must be encouraged from long-term unemployment into jobs. The benefit and tax system must adapt to that need. Tax and benefits systems must be in place in Northern Ireland, to encourage people away from benefits and back into secure employment. We have to move away from benefits and poverty traps. One way to do so would be the minimum wage, as proposed by the Labour party. When I mentioned that to the Belfast chamber of commerce recently, it raised no objections, but even that would not make any impact on the number of unfilled vacancies.
The Government's response to the report refers to the Northern Ireland growth challenge. I am pleased that the Government welcome the efforts of the growth challenge, which offered excellent ideas in relation to employment creation in Northern Ireland. They involve a number of private sector companies. It is disturbing to hear the Northern Ireland growth challenge refer to a culture of comfort in Northern Ireland and to the possibility that, unless the peace dividend is properly managed, there could be a gap in its cycle of comfort, as it calls it, which could lead to higher unemployment in the short term.
In the time left available to me, I should like to touch on other issues in the report. I endorse the comments of the hon. Member for Sevenoaks (Mr. Wolfson) on small businesses. Northern Ireland has a high proportion of small firms compared with the rest of the United Kingdom. Paragraph 184 of the report states:
Paragraph 189 states:
It is probably as well that the right hon. Member for Henley (Mr. Heseltine) is not the Secretary of State for Northern Ireland, or small businesses in the Province would be in real trouble. The Labour party is on record as saying that it is considering proposals for statutory protection for small businesses in relation to late payment of debts, and a moratorium law to assist in relation to bankruptcy.
Energy costs are the subject of another Select Committee report. That issue needs to be dealt with. The privatisation of electricity in Northern Ireland has left generators in an unregulated monopoly position, with contracts extending well into the next century--until 2024. There is little likelihood of electricity prices coming down in Northern Ireland until the issue of those contracts--including the gas "take or pay" contract--is dealt with.
On transport links, I take on board Northern Ireland Members' comments on the A8 to Larne. The Province has a high level of academic achievement, both at A-level and at universities. The downside is the number of children who leave school without any qualification. I am pleased that the Government's response to the report calls for measures to improve that position.
I have mentioned the peace dividend. It is essential that the Government carefully manage what is referred to as the peace dividend--about £500 million going into the Northern Ireland economy. I hope that it will continue to be the case that we no longer need to spend as much on security and such matters in Northern Ireland. That money should not simply be removed from the Northern Ireland economy in one go.
I do not have much time to debate tourism, but the report says that it has the potential to create 20,000 jobs. That must be dealt with.
"Small businesses . . . can suffer from a cautious approach to lending on the part of the banks."
7 Feb 1996 : Column 285
"The largest problem encountered by Northern Ireland's small businesses is that of cash flow, payments and debtors".
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