Youth Unemployment

Guto Bebb Excerpts

Wednesday 9th November 2011 Commons Chamber

[Guto Bebb (Aberconwy) (Con)]

My hon. Friend the Minister said that he believes strongly in localism, and so do I. However, having suffered under a Labour-led or Labour Administration in Cardiff for the past 12 years, it is sometimes difficult to keep supporting the idea of localism.

Since 2000, the level of Welsh GDP in comparison with the European average has fallen from 68.6% to 64.4%. At the same time, between 2000 and 2010, the proportion of young people aged 16 to 24 in Wales who are unemployed increased from 15.8% to 21.5%. The sad fact about this debate is that Opposition Members simply do not recognise that a failing economic performance is related to a failure to create jobs for young people.

Wales has had support from Europe on a regular basis because of the failure of the policies adopted by the Labour party in Wales. Such is the failure of the Labour Government in Wales to put together policies that make a difference that Wales is one of only eight regions out of 66 in Europe that have qualified for objective 1 funding to see its prosperity decline. To put that in context, over the past 10 years under Labour, Wales has gone backwards while even the Greeks have gone forward. That is the reality of living under Labour. I support localism, but in Wales we suffer for it.

We cannot divorce this debate from education, skills and training for young people. Recently, there was evidence from the largest inward investor in the south Wales valleys over the past five years that less than 20% of the young people who were referred for job interviews—not for high-level jobs, but for comparatively low-level jobs—had adequate skills in reading, writing and arithmetic, and, more importantly, adequate social skills. Is that a surprise when the Labour Government in Cardiff have deliberately decided to spend £600 per head less than England on educating young people? That is the reality of Labour.

We must take on board the need to create economic growth and prosperity. Jobs for young people will not appear in isolation. Opportunities for young people will come as a result of economic growth and success—something we desperately need. That is why it is crucial that we pay tribute to this Government for taking the issue seriously. The Work programme, which has been mocked by Opposition Members, will ensure that payments are made on the basis of performance. That is a move in the right direction. It means that people will have to be in position for 12, 18 or 24 months before payments are made. That is a sign of confidence in the ability of the programme to get people into private employment.

[Mr Byrne]

I am following the hon. Gentleman’s argument with care. Will he tell the House how he thinks the programme is going in his constituency, because long-term youth unemployment is up by 100%?

[Guto Bebb]

The shadow Secretary of State again makes the mistake of making a short-term point about unemployment in my constituency, without reference to the fact that the biggest employer in my constituency is the tourism industry, which is seasonal. As he wants to make an issue of youth unemployment in my constituency, it is worth pointing out that we have literally hundreds of people working in hotels, guesthouses and other tourism-related businesses there who are hard-working, successful and moving on. The sad fact is that a huge number of them are from eastern Europe. Those people have grasped their opportunity, but that opportunity has not been available to young people from my constituency because of the welfare state created by the Labour party, which is more interested in throwing money at a problem than solving it.

[Mr Byrne]

rose—

--- Later in debate ---

[Guto Bebb]

I will not take another intervention, because it would be unfair to my colleagues.

The Labour party has created a dependency culture, rather than a culture of can-do and change. As my hon. Friend the Member for Selby and Ainsty (Nigel Adams) made clear, young people should have the opportunity to take a job and to develop in that position. The Labour party’s policies have ensured that those jobs are not available. Many young people in my constituency have families and responsibilities, but because of the welfare system developed by the Labour party over 13 years, they are often better off not taking a job. The biggest change that the coalition Government are making is to ensure that when people take employment, they are better off. It is unacceptable that the Labour party believes that throwing money at people and allowing them to do nothing is more effective than changing the way we live and giving people the opportunity to make something of themselves in employment.