Unemployment

Jim Shannon Excerpts

Wednesday 14th December 2011 Commons Chamber

[Chris Grayling]

I regret every single redundancy in any sector in any part of this country. It is a terrible blow for the people concerned. I do not know about the case, but if the hon. Gentleman wants to talk to me afterwards, I will ensure that Jobcentre Plus support from a rapid response team is available to his constituents. I regret any such situation. However, we are having to get to grips with the challenges of the public sector because of the mess we were left. If we did not do that, unemployment would be higher, not lower. I stress that we will do everything we can to help the hon. Gentleman’s constituents and those elsewhere who are in a similar position. Any unemployment is too high, and we will do all we can to help tackle it.

Let me briefly consider the youth contract because questions have been asked about it. It was announced shortly after our debate a month ago and I think that it will enhance the programmes that we are already delivering. It builds on the programmes that are already in place and will involve doubling the work experience programme so that we should be able to guarantee every single young person who has been out of work for three months a work experience place. Through the Work programme, it provides a subsidy to employers to take on a young person who has been unemployed for a longer time. The CBI proposed it to us, but it is more generous than the programme that the CBI requested. The shadow Minister made the point about the previous Government’s scheme in 2009, but the difference is that we are delivering something to a template that leading business groups requested. They say that it will make a real difference to the likelihood of an employer taking on a young person. I hope and believe that will make a genuine difference.

[Jim Shannon (Strangford) (DUP)]

One of they key factors throughout the United Kingdom that perhaps the Minister has not mentioned yet is small and medium businesses. In Northern Ireland, 90% of those in employment are employed through small and medium businesses. What help does the Minister intend to give small and medium businesses to create jobs and thereby address youth unemployment?

[Chris Grayling]

I agree that small and medium-sized enterprises are crucial. I hope that the subsidy that is paid to employers through the youth contract will be attractive to large and small employers. We are clear that the role that small businesses play is important. Opposition Members raised issues about unemployment among the older generation and I believe that our new enterprise allowance, which is proving successful in the areas where it has been operating so far and is now available throughout the country, will provide a real route for people who want to build their own SME in future.

Mr Deputy Speaker, do not listen to what you hear from the Opposition about the Government doing nothing about unemployment. We have a comprehensive range of support, which I believe can make a real difference to the unemployed. We face huge economic challenges and some of the most difficult economic circumstances that any Government have faced. However, unemployment is and will remain a priority for the Government. We will do everything that we can to tackle it.

--- Later in debate ---

[Alex Cunningham]

I agree. My hon. Friend provided an illustration of that earlier when he mentioned the job losses that have been announced in a company in his constituency. For some time the Tories said that we did not have a plan for jobs. They may have systematically dismantled our investment programmes for job creation, but it is not too late for them to adopt our five-point plan for jobs and growth.

Like others who have spoken, I shall concentrate on the subject of young people. The acceleration in the number of young unemployed people will help this Tory-led Government to go down in history as the Government who could not care less about our country’s most important asset.

[Jim Shannon]

It has been suggested that businesses should be given an incentive to employ people aged between 16 and 24, in the form of a £1,500 tax relief which would cover national insurance contributions for a year. Does the hon. Gentleman believe that such initiatives are capable of providing employment for unemployed people?