Select Committee on Economic Affairs Minutes of Evidence


Examination of Witnesses (Questions 580 - 582)

TUESDAY 22 JANUARY 2008

Professor David Metcalf and and Mr Mark Franks

  Q580  Lord Vallance of Tummel: Or where? It is just going to be lists of jobs?

  Professor Metcalf: No, because it is not—with due respect to Lord Lawson—an old-style manpower planning exercise, because you would get everybody then saying you cannot do that, but that is not to deny that, for example, the sector skills council which deals with the utilities—and they are very exercised presently about the shortage of nuclear engineers, for example—but also to take electricity linesmen, the people who string the lines along the pylons, they actually do produce numbers of how many they need, how many there are and so on. We are not going to get into that level of detail, but if they are able to convince us that, yes, for the time being they have not got the numbers that they require, then we are very likely to put that on the shortage list, but we are not going to go into details about regions other than Scotland, which we are tasked to do. I would wish to talk about regional mismatches because this is something which exercises people in particular regions and it is also a very important issue. There is a big issue that it is quite plausible that if you have big infrastructure projects in one area, that will suck skills out from other areas which have consequences for those economies. I want to allude to that, but we are not presently tasked to properly analyse that.

  Q581  Lord Vallance of Tummel: I still do not understand quite how you can put a particular job on the list of shortages without having some sort of idea of quantification. To take an extreme, if there is was just one short it probably would not get on your list, so is there no threshold in your mind?

  Professor Metcalf: I took your question to mean that we would be producing predictions of the future labour supply and future labour demand. We are not going to do that, but, for sure, people will be able to make a much stronger case that there is a shortage if the fraction of their existing workforce that they say they are going to demand into the future, and if they can demonstrate that the demand is there, is much higher. However, as Lord Turner says, of course one also wants to look at the equilibrating mechanism and one wants to look at whether or not—because that is part of our terms of reference—it can be sensibly filled by immigration, because if you can get a wage response, then it may very well be that that is a better mechanism to fill the gap, use the equilibrating mechanism rather than use the immigrants.

  Q582  Chairman: Thank you very much. We have all learned a lot and we are particularly grateful for the way you have managed to bring your thinking into your answer, which will enable us to study your answers with great care afterwards. We are very grateful to you for coming along and helping us on our inquiry. Thank you very much.

  Professor Metcalf: Thank you very much indeed.






 
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