Unemployment in Scotland

Russell Brown Excerpts

Wednesday 5th December 2012 Westminster Hall

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

Thank you very much, Ms Dorries. It is a pleasure to serve under you this morning.

I begin by congratulating my hon. Friend the Member for West Dunbartonshire (Gemma Doyle) on securing this debate. I think that many of us had suspected that we would have seen the full ranks of the Scottish National party here in Westminster Hall this morning. Instead, they sent the normal token gesture in—the hon. Member for Na h-Eileanan an Iar (Mr MacNeil)—and he has fled the scene of the crime already. That is no help whatsoever.

All too often we hear from the SNP about “shovel-ready” projects; indeed, they have been mentioned again in Westminster Hall this morning. I can tell everyone here today that there are hundreds of young people in my constituency who would desperately love to get on the end of a shovel and be gainfully employed, because that is the thing that they really want to do and the inability do it causes deep depression in households and communities, which is something that, as a nation, we can ill afford. When I say “a nation”, I do not just mean Scotland; I mean the entire UK. Young people desperately want to be out there being gainfully employed.

In about three hours’ time, we will have heard the bulk of what the Chancellor has had to say today. I do not hold out many hopes, but I am open to persuasion and I am ready to be surprised as he makes his autumn statement. However, my area is a rural area. I will mention figures this morning and I apologise to the Minister before I start mentioning them, because those figures are for Dumfries and Galloway; they are figures not only for my constituency and my backyard but for part of his backyard as well. The reality is that although the unemployment figures in our area are desperately high, he and I both know that our local economy is based around small and medium-sized enterprises, and there are enough SMEs that if all of them took on one extra person we would just about wipe out unemployment in my local area.

The difficulty is that our two largest employers are the local authority and the local health board, and the impact of the cuts that we have seen in the last few years, both under the coalition Government in Westminster and under the SNP Government in Edinburgh, is really breathtaking. It is not a surprise to those of us here in Westminster Hall today, but it may well be to those outwith here, that we actually saw cuts happening in Scotland in our local area in the public sector at least two years before there was any cut in block grant to the Scottish Government. So it was all happening under the guise of this great nationalist Government, and quite frankly it was destroying the base for jobs and any sort of growth in my local area.

In October 2010, there were 2,691 jobseeker’s allowance claimants in Dumfries and Galloway; in October 2011, there were 3,042; and in October 2012 the figure had grown to 3,205. As for the long-term unemployed, there are now just over 900 people who are long-term unemployed in Dumfries and Galloway, which is the highest level since 1999. Those long-term unemployed people, many of whom are young people aged between 18 and 25, find themselves in a desperate plight.

Again, it is unfortunate that the sole SNP Member who was present earlier—the hon. Member for Na h-Eileanan an Iar—has now left, because we even had a situation earlier in the year when one of our local regional list MSPs, a lady by the name of Joan McAlpine, decided to have a jobs summit. [Interruption.] A sharp intake of breath—no further comments please. She decided to hold a jobs summit and she introduced to the local community the Minister responsible for youth unemployment, a lady called Angela Constance. We have heard nothing since. That “summit” was a talking shop and I regret to say that I had to force my way in to see what was actually going on. It was all window dressing, with nothing to show for it.

I know that colleagues have already mentioned the future jobs fund and how some people have said that it was not working. In fact, the Prime Minister himself said that it was

“expensive, badly targeted and did not work.”—[Official Report, 19 January 2011; Vol. 521, c. 832.]

So, at a very early stage of this coalition Government, the decision was made to scrap the future jobs fund. That left many of us somewhat bewildered and confused, because not that many months beforehand officials in the Department for Work and Pensions were saying that it was a good programme and it was working.

I apologise to colleagues if I am about to divulge information that they are already aware of, but only last month the DWP published a document entitled, “Impacts and Costs and Benefits of the Future Jobs Fund”. It said:

“Under the baseline assumptions, the FJF programme is estimated to result in a net benefit to participants.”

That was estimated at approximately £4,000 per participant. In addition, the net benefit to employers was estimated at approximately £6,850 per participant; the net cost to the Exchequer was estimated at approximately £3,100 per participant; and the net benefit to society was estimated at approximately £7,750 per participant. I am no economist—quite frankly, I am not an expert in anything—but I would have thought that those figures showed some sign of a good return for the investment that was being put in.

I visited a number of young people who were working on a future jobs fund programme, along with my hon. Friend the Member for Glasgow North (Ann McKechin) who is sitting beside me now and who was a Minister at the time. We jointly visited a group of young people and they were delighted at the opportunity that they were being given to work. Suddenly, however, the new Government deemed that the future jobs fund was a failure.

I could go on at length, but I will not because I know that there is another colleague, my hon. Friend the Member for Inverclyde (Mr McKenzie), who wants to speak. However, we have seen the cuts in the numbers of nurses and midwives in our areas, and the cut in police support staff in our areas, and quite frankly that is down to a combination of the coalition Government and the SNP. So, if we are talking about crime, they are partners in crime in what has happened in my area.

It is not that Labour does not have an answer. I am sure that my right hon. Friend the Member for Morley and Outwood (Ed Balls), the shadow Chancellor, will make his point this morning, and it is about the 4G mobile spectrum and the £3 billion that can come from that, and it is also about tax on bankers’ bonuses. Those are not just warm words: this money can be used constructively, to do something for our country and for the unemployed. On the back of some of that, we could have 100,000 jobs for young people and bring forward investment.

The country has been here before. When the Labour party came to power in 1997, we gave a commitment to the people of this country that we would use a windfall levy on the privatised utilities to create the new deal; we carried that commitment through, and it worked for the benefit of unemployed people. I just hope the Chancellor will listen a little today to the shadow Chancellor and to some of the views expressed in this debate.

[Mr Iain McKenzie (Inverclyde) (Lab)]

rose—

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[The Parliamentary Under-Secretary of State for Scotland (David Mundell)]

It is a pleasure to serve under your chairmanship, Ms Dorries. You are certainly the Member of Parliament my constituents most often ask me about, and I am sure they will be delighted to learn that you have chaired the debate today.

I congratulate the hon. Member for West Dunbartonshire (Gemma Doyle) on securing this important debate. Based on what has been said I feel that there might be little that we agree on, but I do agree on the importance of having a debate such as this here at Westminster, to focus on issues that are the responsibility of the UK Government, and also on the importance of Members from Scotland holding the Government to account for their policies and actions in Scotland.

I find it disappointing that the Scottish National party has not sought to contribute to this debate, other than through a few random interventions. I do not want to be in the position that the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) spoke about, of blaming the other Government—the Government in Scotland—for everything that is going wrong, which would be to adopt the reality of Alex Salmond’s “plan McB”: to claim credit for everything that is good and to blame the Westminster Government for everything that is bad.

Opposition Members, other than the hon. Member for Kilmarnock and Loudoun, to be fair, chose to use their contributions to blame both Governments for everything that is happening. As usual—I had no expectation otherwise—they took no responsibility whatever for the catastrophic state in which they left the UK economy when they left office in 2010. Indeed, we may hear once and for all an apology from the shadow Chancellor today for the state of the economy at that time, which would be good.

[Mr Russell Brown]

I recognise that the Minister and his colleagues are very good at talking about the mess that they were left, but will he share with the Chamber what the black hole was? What was that debt? If we remove from that debt what was provided to support the banks and the UK economy, how big really was that black hole?

[David Mundell]

There was a black hole because, for a significant period of time, the previous Government were spending more than they brought in. That is the reality, and the hon. Gentleman cannot pretend otherwise. Today we have heard various versions of the plan Labour now has to turn the economy around, but the core of that plan remains more spending, more borrowing and more debt—exactly the same prescription that brought the country to its current state.