Oral Answers to Questions

David Jones Excerpts

Wednesday 12th October 2011 Commons Chamber

[Chris Ruane (Vale of Clwyd) (Lab)]

1. What recent assessment she has made of the level of youth unemployment in Wales; and if she will make a statement.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

The latest youth unemployment figures for Wales are disappointing, and I am sure that there is still much for us to do to ensure that the recession does not leave a legacy of workless young people. We will ensure that young unemployed people get the personalised help that they need to find full-time permanent jobs. As part of our reform of the welfare system, we are introducing a number of measures to support young people in finding employment.

[Chris Ruane]

Forty-six per cent. of the workers in my constituency, and 45% of the workers in the hon. Gentleman’s constituency, work in the public sector. The Government want to sack up to 25% of those workers: the theory is that they will be employed by the private sector. Given today’s huge increases in unemployment, where are the jobs going to come from for those public sector workers?

[Mr Jones]

The hon. Gentleman will know that this Government inherited the most appalling economic legacy from the Labour party. That party seems to think that there is a bottomless purse to fund public sector jobs, irrespective of the economic state of the country. However, I am sure he will pleased to know that in his constituency there are, according to the latest figures, 273 vacancies, and I suggest that he encourage his constituents to seek those places.

[Jonathan Evans (Cardiff North) (Con)]

Is my hon. Friend aware of the reports from the Joseph Rowntree Foundation and the Prince’s Trust, which make it clear that the fivefold increase in youth unemployment in Wales is the legacy left to this Government by those on the Labour Benches? Given that context, and bearing in mind the Prince’s Trust’s success in getting 75% of young people into employment, work or training, will he commit the Government to working closely with the Prince’s Trust and involving it closely in the Work programme?

[Mr Jones]

Like my hon. Friend, I commend the work of the Prince’s Trust, and my right hon. Friend the Secretary of State has already had meetings with its representatives. I also remind the House that the Welsh Government have a significant role to play. They are in charge of economic development and are responsible for training, which is key to reducing youth unemployment.

[Hywel Williams (Arfon) (PC)]

Is cutting the benefits for young people in order to encourage them to search for non-existent jobs not just a cruel mockery of their misfortune?

[Mr Jones]

I think that the hon. Gentleman will find that the Work programme, which this Government brought in, has introduced a level of tailored support for young people and others seeking work. The most important thing for people in the position of those he mentions is to regain work as quickly as possible.

[Mr Mark Williams (Ceredigion) (LD)]

The Minister will be aware of the excellent work on youth training undertaken by Ceredigion Training in my constituency, which equips young people with the skills they need to gain work. Does he therefore share my concern that the Welsh Assembly Government have cut the work-based learning grant to Ceredigion Training, which means fewer apprenticeships and fewer opportunities for young people to get back into work?

[Mr Jones]

As my hon. Friend points out, the issue of economic development is firmly in the hands of the Welsh Assembly Government, as indeed is training. That is entirely a matter for them, but I am bound to say that, given the current economic backdrop, I was surprised that the economic development budget was cut last week.

[Owen Smith (Pontypridd) (Lab)]

One of the flagship Government policies that was meant to help the private sector to grow in Wales was the national insurance holiday. That was meant to improve the prospects of 45,000 companies in Wales, but it has actually supported just 300—less than 0.7% of them. Will the Minister tell the Chancellor that it is not working in Wales and that he really needs to pull his finger out and help the 16,000 people who have found themselves on the dole as a result of this Government?

[Mr Jones]

The hon. Gentleman will find that the increase in unemployment is directly referable to the incompetent management of the economy by the Government whom he supported. Of course my right hon. Friend the Chancellor keeps such matters under constant review.

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[Albert Owen (Ynys Môn) (Lab)]

5. What assessment she has made of the effects of the Government’s economic policy on employment levels in Wales.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

Through our economic policies, we are committed to delivering strong and sustainable growth balanced across the whole UK, including Wales, rather than concentrated in London and the south-east, as it was under the previous Government. We have made it clear that our top priority remains tackling the deficit while creating the right conditions for the private sector to expand in Wales and create jobs.

[Albert Owen]

I welcome measures taken by the Welsh Government to stimulate the economy in Wales, but the UK Government, at a time of high unemployment, high inflation and rising borrowing, have taken money out of the economy by putting up VAT. Does the Minister agree with the Federation of Small Businesses that it is time to consider a temporary reduction in VAT to stimulate the economy, particularly in sectors such as construction and tourism, to increase employment in Wales?

[Mr Jones]

Those are matters that my right hon. Friend the Chancellor keeps under constant review, but I am surprised that the hon. Gentleman does not appear to regret, as I do, that the Welsh Assembly Government have decided to cut their economic development budget at this difficult time.

[Alun Cairns (Vale of Glamorgan) (Con)]

Does the Minister accept that enterprise zones could create private sector employment in some of the most needy parts of Wales? Does he not think that the Welsh Government’s approach has been somewhat disjointed at best? Some prosperous parts have become enterprise zones, but some of the most needy parts, such as Barry in my constituency, have not.

[Mr Speaker]

May I remind the Minister that he is not responsible for the Welsh Assembly Government, so a pithy reply would be in order?

[Mr David Jones]

In all pithiness, I agree with my hon. Friend the Member for Vale of Glamorgan (Alun Cairns) that enterprise zones are key to economic development, and I regret that the Welsh Assembly Government have still not clarified their intentions in that regard.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Lloyds TSB’s Wales business activity index for September reported the sharpest decrease in private sector employment for 27 months. What specific countervailing measures is the Minister arguing for with the Treasury to give the Welsh economy a competitive edge?

[Mr Jones]

I am sure that, like me, the hon. Gentleman will welcome today’s announcement of sector-based work academies. That will apply to the whole United Kingdom, including Wales. It will give young jobseekers the tools that they need to find employment more easily.

[Julian Smith (Skipton and Ripon) (Con)]

6. What recent discussions she has had on promoting economic growth in Wales.

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[Ian Lucas (Wrexham) (Lab)]

7. If she will assess the effects of changes to the feed-in tariff scheme on the solar industry in Wales.

[The Parliamentary Under-Secretary of State for Wales (Mr David Jones)]

We will consult on proposed changes to the feed-in tariff scheme, and will produce an impact assessment setting out the effects across the UK in the autumn. My right hon. Friend the Secretary of State and I have spoken to a number of businesses across the UK and understand their concerns in this regard.

[Ian Lucas]

Labour’s feed-in tariff created 300 jobs in my constituency. The Tories have increased unemployment in Wrexham in the past six months by 12.6%. Why are they reversing the successful Labour policy that is creating private sector jobs, when they are supposed to be favouring jobs and growth?

[Mr Jones]

I agree with the hon. Gentleman that Sharp is an extremely important employer in his constituency. He will be aware that the feed-in tariff scheme favoured large-scale solar farms, not the domestic installations, but I hope—indeed, I am sure—that he will welcome the announcement last month that Sharp has secured a multi-million-pound contract with Wrexham county borough council to install solar panels in 3,000 local authority homes.

[Jenny Willott (Cardiff Central) (LD)]

The solar technology industry is just one of the growing green technology industries that could be vital to boosting job creation in Wales. Does the Minister agree that strong Government support for those industries will not put the country out of business, but will stimulate investment in this area and help the Welsh economy to recover?

[Mr Jones]

My hon. Friend is entirely right. This Government are committed to pursuing the growth of green industries in the United Kingdom. [Interruption.]

[Mr Speaker]

Order. It is still far too noisy. I know the House will be united in wanting to hear Mr Peter Bone.