Jobs and the Unemployed

Debate between David Lammy and Elizabeth Truss

Wednesday 7th July 2010 Commons Chamber

[Elizabeth Truss (South West Norfolk) (Con)]

We have heard a lot of talk from the other side of the House about jobs and growth, but over the past 13 years we have seen illusory growth and illusory jobs that have been fuelled by public spending and paid for by unsustainable debt. Let me give an example: the National Audit Office published a report that suggested that between 2002 and 2007 the jobs created by regional development agencies cost £60,000 each. For every new job, the Government effectively spent £60,000. Such a level of public sector job creation is not the way that we will increase jobs in the long term.

There has also been a lot of talk about evidence, but if we consider the evidence of what creates growth and what creates jobs—I have looked at some international Treasury studies on this—we see that the most productive area of public spending as regards growth is infrastructure spending and the second most productive in terms of growth and jobs is education spending. That is where the Government should be focused and that is where we are rightly focused.

[Mr Lammy]

In the light of what the hon. Lady has just said, which was put very well, will she make representations to the Government about the closure of the Building Schools for the Future programme, which is at the centre of both education and infrastructure in this country?

[Elizabeth Truss]

The evidence suggests that the most productive education spending is that on the quality of teaching, not on the quality of the buildings. I am happy to discuss that further with the right hon. Gentleman, and I will do so by letter if he likes.

Moving on to the reports that demonstrate that infrastructure spending is the most effective way to spend, it is not just those in ivory towers who think that—indeed, the Library agrees—but local businesses in my constituency do, too. I asked them to give me their priorities for what the Government should do for South West Norfolk businesses. They said, “No. 1: improve the road and rail links. No. 2: get the performance up in our schools, so that we have the skills that we need locally.” That is what people say.