Jobs and the Unemployed

Gavin Shuker Excerpts

Wednesday 7th July 2010 Commons Chamber

[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.

[Gavin Shuker (Luton South) (Lab/Co-op)]

In the light of what the hon. Lady has just said, will she say a few words about the cancellation of the A14 project, which is vital to her region and my region in the east of England?

[Elizabeth Truss]

I am in the process of making representations on the A11, which is a crucial project that would open up businesses in Norfolk. We should assess such projects—I shall come to this later in my speech—on the basis of economic return. We have a very small pot now, owing to what has happened and the money that has been spent in the past few years, and we need to use that pot wisely. I should like to see the evidence on those various roads and consider the highest rates of return. That is my answer to the hon. Gentleman’s point.

Given that businesses would like growth to be created in that way, so that they can create jobs, where have the last Government spent the money? Have they spent it on infrastructure? The World Economic Forum report suggests that Britain is sixth in terms of gross domestic product. Where do hon. Members think that we are on the infrastructure table after 13 years of Labour Government? We are thirty-fourth. That record has created the problems that we see: new jobs are not being created in the private sector because the money was not spent. Not only did the last Government fail to fix the roof while the sun was shining, they failed to fix the roads while the sun was shining, and we are left with that legacy. We are left with a difficult position. Not only are there potholes in our roads, but there is a huge hole in our budget. We must ensure that we spend on things that provide value for money.

--- Later in debate ---

[Gavin Shuker]

Within the context of the debate about the evidence basis for RDAs and the benefit that they give, does my hon. Friend agree that financial information about the amount of money that goes in and comes out of the public purse is a much better guide than ideological points about how people feel about regional development agencies?

[Catherine McKinnell]

I absolutely agree, and my hon. Friend makes his point very well indeed.

A large number of my constituents lack any formal educational qualifications. Such individuals, should they be already unemployed or, as is likely to happen in my region, should they be made redundant, will be hugely affected by the cuts announced to the DWP’s job creation and training schemes, which have been widely debated today. They will no longer have the necessary help to prepare themselves to take advantage of new opportunities arising from the eventual recovery, and that is especially concerning in relation to youth unemployment. The future jobs fund has been abandoned, and the £1,000 incentive for businesses to employ a person who has been unemployed for six months or more has been scrapped. Extended periods of unemployment and a lack of appropriate training mean that those vulnerable groups will be dangerously ill equipped to enter the future jobs market. The decision to ask the Department for Education to make huge cuts is also disproportionately damaging. It is clear that, because only 10,000 of the promised 20,000 extra university places are now available, access to higher education for state school pupils will inevitably be restricted.