Economic Growth and Employment

Debbie Abrahams Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Gordon Banks (Ochil and South Perthshire) (Lab)]

I will bear in mind your comments, Mr Deputy Speaker.

The problem in a debate like this is where to start. I will start with what I want to see, which is business growth. Business growth delivers job creation, which in turn delivers tax revenues and growth for individuals, the importance of which we should not underestimate at any cost. The fundamental question that we are discussing is whether Opposition and Government Members believe that the Government can be a driver for growth. I and a number of my colleagues believe that they can be.

Why is this debate so important? It is important to my constituents because people in my constituency are losing jobs, and businesses in my constituency are going bust. The industry that I have been involved in since I was 18 years of age has been decimated by the Government. In Ochil and South Perthshire, 5.6 jobseeker’s allowance claimants are going after each job. I realise that that is by no means the highest rate in the UK. The number of JSA claimants in Ochil and South Perthshire has risen by 95% since 2006. The overall number of people in employment is falling. In the last year, 93% of constituencies saw a rise in their claimant count. That has been caused by the speed and depth of the cuts, and by the private sector not being able to keep up with them, just as the Opposition said would happen.

That is why we want the Government to do more to help UK businesses. Helping business helps employment. The Government have cut capital budgets by 11%. Because their deficit reduction plan is failing, they will have to borrow more to pay for unemployment and to cover falling tax revenues. That is the backdrop that has led to this debate. The Government should listen hard to what is said by my colleagues on the Labour Benches.

As I said, I have been in the construction industry all my life. I remain involved in that business today. In the time that I have left, I will talk about what the Government can do and should be doing to help the construction industry. It is my view that the construction industry gives a measure of the economy as a whole. It is of the private sector, but it needs the public sector and the private sector to survive. If businesses want to expand, they need the construction industry to do so if they need premises, transport networks or communication infrastructure. If the construction industry is on its knees, the country is on its knees. The Government need to grasp the fact that every pound spent in the construction industry generates £2.83 in the wider economy. That point is not disputed.

The Opposition’s five-point plan would benefit the construction industry from point one through to point five. I will focus on one or two of the points in the short time that I have left. Bringing forward investment projects to get the industry working again would regenerate our infrastructure, allow future growth and give skills to individuals.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I wonder whether my hon. Friend wants to comment on the call of the International Monetary Fund for a global growth compact, which supports exactly the initiative that he is suggesting. It says that there must be infrastructure development in the west—not just this country but the whole world—to recover from this economic downturn.

[Gordon Banks]

I agree with my hon. Friend. If we do not get our infrastructure right, we will not be in the position that we want to be in when things move forward and we will be disadvantaged. I ask the Government not to look solely at big individual projects when they are trying to regenerate the economy. We need local and regional regeneration and investment in local and regional infrastructure.