Jarrow Crusade (75th Anniversary)

Grahame Morris Excerpts

Monday 31st October 2011 Commons Chamber

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I pay tribute to the hon. Member for Jarrow (Mr Hepburn) for his success in securing the debate and for the eloquent way in which he has referred to what was undoubtedly an important moment in the history of this country. Looking back over the course of the past 150 to 200 years, there have been different groups of individuals and different moments at which the social history of this country has been changed—events such as the actions of the Tolpuddle martyrs and the rise of the Chartist movement. I would classify the Jarrow marchers as being very much part of that tradition. They undoubtedly had an impact on the way that this country thinks. It may not have been an immediate impact, but it has been lasting. It put the hon. Gentleman’s town on the map internationally as a place from which people rightly draw inspiration. I pay tribute to him and to the people of Jarrow on the occasion of the 75th anniversary of the march.

Of course, the hon. Gentleman is right to say that we live in a different world today. Although we live in tough times, the stark, bleak environment in which many of those people lived is not the world in which people live today. We have a welfare state that we all agree is an essential part of providing a safety net for those who fall on tough times, including those who lose their jobs. I absolutely agree with him that it is a tough thing, in any circumstances, to lose one’s job. Unemployment is a difficult process for any individual to go through.

[Grahame M. Morris (Easington) (Lab)]

Does the Minister agree that, as in the 1930s, we need a realistic plan for jobs and growth?

[Chris Grayling]

We face a different challenge from that of the 1930s, but I accept that we need a plan for jobs and growth. If the hon. Gentleman will give me a moment to continue my remarks, I will go on to talk about what we are doing about jobs and growth.

I very much accept the principle that unemployment represents a real challenge and difficulty for individuals. It is, and rightly should be, at the top of the agenda of any Government at any time, but particularly at a time such as this when we are feeling the chill winds of a very difficult international economic situation and dealing with some of the biggest financial challenges seen in the peacetime history of this country. At the same time, we must not and will not forget the real human impact of unemployment, and we will do everything we can to tackle it.

--- Later in debate ---

[Chris Grayling]

I am not sure what the hon. Gentleman means by it being a third of what it used to be, because this is a new initiative. We are targeting money specifically at investment in manufacturing and research and development. I must say that some of the examples from the regional development agencies were pretty poor. I have seen examples from the north-west of misjudged investments and strategies. I believe that targeting grant support specifically on projects that will create jobs in the short term in the north-east and elsewhere is the right thing to do.

[Grahame M. Morris]

rose—

[Chris Grayling]

I will give way one more time and then I must make some progress.

[Grahame M. Morris]

I must congratulate my hon. Friend the Member for Jarrow (Mr Hepburn) on securing this important debate. There are important parallels with what is happening today. Is it not a travesty that we do not, in effect, have a regional policy? The abolition of RDAs has taken us back not to the 1980s, but to the 1960s. The regional growth fund is a complete misnomer because any part of the United Kingdom, even wealthy areas in the south and south-east, can bid for its support. We do not have regional policy now, so we are left to the vagaries of God and good nature.

[Chris Grayling]

I disagree with the hon. Gentleman, because I think that the creation of the local enterprise partnerships gives a much better and more localised focus to economic developments. It avoids the situation whereby, for example, a regional development agency in the north-west is trying to form a judgment on whether it should focus on the two great cities of Liverpool and Manchester, rather than having the decisions about those cities taken in Greater Manchester and on Merseyside. A localised focus for regional development is the right approach.

--- Later in debate ---

[Chris Grayling]

I will just make a bit of progress and then I will give way.

The hon. Member for Easington (Grahame M. Morris) asked me about the economic strategy and he made a fair point. In my view, we have to focus on jobs, growth and high-quality back-to-work support for the unemployed. I appreciate that this is a point of difference between us, but it is my view that a central part of rebuilding economic prosperity in this country is dealing with the deficit that Labour Members left behind. The reason why I say that is straightforward: if we were not dealing with the deficit and if we were not seen to be bringing our public finances under control—

[Grahame M. Morris]

rose—

[Chris Grayling]

Let me finish. If we were not doing those things, we would be facing the economic uncertainties that we see right now in other European countries. Does anybody seriously believe that if we were in that economic position, we would be seeing private sector organisations willing to invest and create jobs? Private sector jobs have been created in this country over the past 12 months. Had we not set about dealing with the deficit, unemployment today would be higher, not lower.

[Chris Grayling]

Obviously, the hon. Gentleman and I are not going to agree on that point, but he simply has to look around at the rest of Europe to see the consequences of over-borrowing, unsustainable debt and large budget deficits. This Government have set about the task of dealing with that problem, which is the path to economic stability.

Alongside that, we of course need measures that are designed to support the growth of business. That is why we have cut corporation tax and why we are providing additional incentives through corporation tax for investment in intellectual property. It is also why we have modernised and reintroduced the enterprise zone model in a number of places in the north-east, which is a further positive step for the area. We are seeking to deregulate in areas such as health and safety and employment law not because we want the wrong thing for employees in this country, but because the evidence is that a more flexible labour market is a better way of creating an environment in which jobs are created.

[Grahame M. Morris]

The message from Government Members is that this economic crisis is built on debt, but the point of view of some of us is that the debt crisis results from a financial crash that was not made here in Britain. However, whether the economic crisis is because of famine, war, debt, corruption or ineptitude, surely we require some kind of growth strategy. Your argument that we cannot possibly get out of the debt crisis by incurring more debt simply does not hold water. Whatever the cause, we must get growths and jobs, especially in my area.

[Mr Speaker]

Order. I am grateful to the hon. Gentleman, but I would just point out that I am not offering any argument at all.