Unemployment (Halifax)

Linda Riordan Excerpts

Wednesday 1st February 2012 Westminster Hall

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

I am delighted to have secured this debate, and to serve under your chairmanship, Sir Roger. I also thank the Minister who will reply to the debate. Before I get to the heart of the issue, however, I would like to paint a background picture of Halifax and describe the social and economic situation in which we find ourselves today.

I grew up in Halifax and went to school there, and I know the people of Halifax well. It is a great place in which to live and work. No one wants to be out of work, but sadly far too many people are. People do not want handouts but the chance to do a good day’s work for a good day’s wage. People do not want to live in—and I do not want to represent—a town where levels of unemployment might be at 15% or 20%. I requested this debate to place on the record what is happening in Halifax, and say why something needs to be done.

Even if the possibility of 20% unemployment in Halifax sounds a little exaggerated, that is sadly where we could be heading unless something radical is done to get people back into work. In recent times, too many regeneration schemes have been axed and new projects scrapped, and too many policies have made the poor poorer, instead of giving them hope of work.

For many years, jobs in Halifax and Calderdale came from a number of industries that sadly are either no more, or are shadows of their former selves—I am talking about engineering, manufacturing and, going further back, the woollen industries. Over the past two or three decades, we have seen a steady decline in those industries that provided employment to key groups of people in my constituency. Today, the two biggest employers are the Lloyds Banking Group—better known to most local people as either the Halifax building society or HBOS—and Calderdale council. Other key employers include the hospital in Calderdale and the primary care trust, and other public sector employers.

Well-run private companies such as J&C Joel in Sowerby Bridge, Harveys department store, or Iplas recycling group in the heart of Halifax, together with many more small companies, provide much needed employment and are key businesses in my constituency. They are models of how to make a profit, provide employment and maintain a dedicated and motivated work force. Over the years, Halifax has relied on specific sectors to provide employment, but when those sectors declined, a vacuum was created. In Halifax, it has never been enough to rely on private sector jobs to fill the void that is created when public sector jobs are lost. The town needs much more than that, which is why regeneration schemes, investment in new schools and the new hospital, together with a strong public sector and the right macro-economic policies, have helped maintain levels of employment in the town.

[Craig Whittaker (Calder Valley) (Con)]

I thank the hon. Lady for securing this debate. My constituency is also in the Calderdale district, and like her, we are all concerned about unemployment, although I think that the figure of 20% may be a little far-fetched. As MPs, we must do all we can promote the area for business growth, which we know to be the key thing. That is particularly true when 20% of constituents in Halifax and Calder Valley work in manufacturing.

Does the hon. Lady agree that although we are incredibly concerned about unemployment, we must also celebrate success? I highlight the example of JLA in Ripponden, which has spent £1 million; KT Hydraulics has recently spent £2 million, and Decorative Panels has invested £8 million. Boxford has recently moved from the hon. Lady’s constituency to mine, spending £6 million and creating many jobs.

[Sir Roger Gale (in the Chair)]

Order. I have been very tolerant, but an intervention must be an intervention.

[Mrs Riordan]

I thank the hon. Gentleman for that intervention, and as I will show later in my speech, I do not intend to talk down Halifax—quite the reverse. I saw the Halifax Courier on Saturday night and read about the new jobs that have been created in Calder Valley. The Halifax Courier is a great source of local knowledge. It talks up Halifax and I have worked with it on many local campaigns, including that to get a direct train service to London, which we accomplished a couple of years ago.

Why have I called this debate today? It is not to make overt party political points, but rather to set out the background and put on the record the current unemployment figures in Halifax which, I am afraid, speak for themselves. I find such figures alarming and wish to seek answers and assurances from the Minister about what can be done. What can be changed, and what initiatives is he planning to ensure that levels of unemployment start to reduce in my constituency?

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Lady on securing this debate; the difficulties that she has expressed are mirrored in many of our constituencies. Does she believe that the onus should be put on apprenticeships and further education colleges to provide proper courses for what industry needs, together with a closer working relationship with organisations such as the CBI and the Federation of Small Businesses?

[Mrs Riordan]

I thank the hon. Gentleman for his intervention. I agree with his point about apprenticeship schemes. In fact, just last Friday, I visited Goodall Transport in Sowerby Bridge in Halifax. It has been there for quite a few years. It would like more money coming up north, because it sees money directed more to the south of England. Also, it struggles with paying VAT before it gets that VAT into the company. It might invoice someone today and have to pay the VAT at the end of February, but not get the VAT by then. Perhaps the Minister will reply to that.

I hope that the Minister agrees that the current levels of unemployment in the town that I represent are unacceptably high, that the current upward trend in the number of people out of work is alarming and that a worryingly large number of those people are in the key 18 to 24 and 25 to 50 age groups. For example, the number of people out of work aged 24 and under has gone up by more than 25% in the last year, and in the 25 to 49 age group, it is up by more than 15%. The overall employment rate is only 66%. That is an alarmingly low level. I hope that the Minister shares my concerns about those rates. Does he agree that under one in four of the active adult population out of work in Halifax is a damning statistic? Will he outline what initiatives can be taken to improve that situation and put in place job creation measures as a matter of urgency, not just at macro-economic level, but at a micro-economic level that benefits my constituents?

Earlier today, I was looking at the statistics from five years ago. The unemployment level in Halifax has nearly doubled in that period. Despite the stereotyping last week of benefit claimants, they are people who want to work and need to work. The whole social fabric of a town can collapse if unemployment levels get too high. Let me be clear: I think that one person out of work is one too many. Does the Minister share my concerns about the figures that I have mentioned? What policies can he introduce to help to stem the flow of job losses, which is rapidly becoming a torrent?

The current situation is fragile, and the campaign to save jobs in the town’s two biggest employers—Lloyds HBOS and Calderdale council—goes on. The knock-on effects for the town of more job losses at those two big employers would be devastating. As Roger Harvey of Harveys department store regularly says to me, “Many town centre businesses need and rely on these jobs.” The fabric of the town is held together by them, and we need both a strong public sector and a private sector in Halifax to ensure that the town’s economic and social base is held together. With the greatest politeness and respect, I say to the Minister that the Government might be misunderstanding towns such as Halifax if they think that a reliance on private sector jobs will create new jobs or replace the ones that are being lost and being lost at a rapid rate.

In that sense, every effort should be being made to protect all jobs at Lloyds HBOS. The Government own more than 40% of that company. Will the Minister tell me what input he has into the board of Lloyds and what he is doing to protect jobs in Halifax and other constituencies? Will he also tell me how shedding public sector jobs helps towns such as Halifax? Will he do all that he can to compensate for those losses and outline what measures he is taking to ensure that new jobs will be created?

Calderdale council is at the heart of the Halifax and Calderdale economy. The reductions in council budgets are hurting the town. Again, may I gently mention that towns in the home counties and other parts of the country can better absorb public sector job losses? When there is a private sector, or towns have grown up with more service-based industries, new jobs can be created much more easily. In northern towns such as Halifax, which have always had a strong and important public sector, that is much harder to do. I hope that the Government fully realise what makes the economy in places such as my constituency tick and how cutting the public sector, but not giving the private sector the means to create new jobs, leads to a damaging and shocking increase in unemployment.

I do not want to knock everything. There are success stories, such as those that I mentioned at the beginning of my speech. I recently visited the Iplas recycling company. The managing director, Howard Waghorn, has visionary and innovative ideas for his company. Likewise, the order book of J&C Joel in Sowerby Bridge continues to expand. However, those are well-run, long-established companies. The new industries and entrepreneurs with innovative ideas needed for the 21st century will not appear in towns such as Halifax simply through the waving of a magic wand and hoping that new jobs are created. I do not want to pretend that everything in Halifax is gloomy. It is not. We need to keep our self-confidence and hope. There are success stories. I am sure, or rather I hope, that the Minister will quote them back to me when he replies.

In essence, I would like the Minister and the Government to recognise the underlying problem that exists in towns such as Halifax, not hide away from it. I hope that the figures that I have cited alarm the Minister as much as they have alarmed me. I would like to hear some answers about what can be done, not excuses for what has not been done. I would like the Minister to assure me that job creation and regeneration schemes will be targeted on Halifax. The initiatives from the Department for Communities and Local Government will help Calderdale council. However, we want not short-term fixes, but long-term solutions. Therefore, I would be grateful if the Minister outlined what his short and long-term plan is for reducing unemployment in Halifax today, before the terrible consequences of further unemployment become a crisis, with people out of work and the whole social fabric of the town ripped apart.