Building a High-Skilled Economy

Stephen Pound Excerpts

Thursday 17th June 2010 Commons Chamber

[Steve McCabe]

If we are going to create jobs for the future and to have a generation in work rather than unemployed, all such initiatives should be encouraged and explored. I agree with the Minister—I do not think that any of us has ownership of these issues—but it is pretty important that we get it right, because we have one chance.

[Stephen Pound (Ealing North) (Lab)]

Does my hon. Friend agree that one of the difficulties with apprenticeships is finding an employer to take the apprentice on for the third year, or even in some cases for the second year? In the benign balmy days of a sophisticated Labour Government who had the economy moving forward, that was quite easy, but now, as the chill winter of Conservatism starts to freeze the economy from all corners, might it not be an idea for us to revert to what the Conservatives did the last time that they were in power and introduce schemes such as the Manpower Services Commission scheme, the youth opportunities programme and so on to provide some support and encouragement to employers? It is easy to take on an apprentice in the good times, but very hard in the bad times.

[Steve McCabe]

I agree absolutely with my hon. Friend. Employers need help and encouragement, and the only people who can provide that are the Government. If we are going to get this to work, that is what has to happen.

The Minister struck a note of optimism today. As I said to him in an earlier intervention, I do not think that that is the view of the senior executives who wrote to The Daily Telegraph today; they struck a note of anxiety and pessimism about cuts in university funding and about being left behind in international competition. It was difficult to see the Minister’s optimism when it came just after the speech from the Chief Secretary to the Treasury, in which he told us that he was axing the young person’s guarantee.

I wish the Minister well, but I warn him that this is going to take more than warm words. The last thing we need to see is a lost generation that does not even get the chance of work. That is the legacy that the Tory Government of the ’80s left us, so I hope that he will learn from the mistakes of the past.

--- Later in debate ---

[Chris Williamson]

Clearly, we live in a global economy, in which orders are placed with different companies around the world—Bombardier won some contracts, but some went abroad—but the fact is that the Transport Secretary said this morning that there is now no prospect of Bombardier getting the Thameslink contract.

[Stephen Pound]

Does my hon. Friend agree that one tragedy of current British manufacturing and skills is that contracts occasionally have to go to countries such as Japan, which has invested more in Bullet train technology and other high-speed train technology, and that that underlines precisely the point he is making?

[Chris Williamson]

Absolutely—my hon. Friend makes a pertinent point. If we were to follow the lead of some of our competitor nations by investing appropriately in skills, we would put our country, our young people, and the people who work in those sectors, in a much better position to secure their long-term future.

The parties opposite have also made proposals for the regional development agencies. The RDAs have played an important role, and the East Midlands Development Agency has made an important contribution to supporting industry in the east midlands and in Derby. That has helped to create the job opportunities and the growth that are so desperately required.

We must not indulge in a race to the bottom. The Government seem to want us to move to a low-wage economy, but there is no future in that for this country. We simply cannot compete on that basis, because we will never match developing nations such as India, China and others and the wage rates paid to workers there. We must invest in those high skills that Derby excels in through companies such as Rolls-Royce and Bombardier. That is why I regret the announcement this morning about Bombardier, which will almost certainly lead to redundancies. If we do not support such companies, they could go elsewhere, because they are global, and they will simply bid for contracts from their European bases.

If there is a market failure, it is essential for the state to intervene and smooth out the difficulties, such as those afflicting the country as a result of the worldwide economic downturn. If we do not do that, it will cause significant problems for the economy—and for young and old alike. No jobs for people means lower tax revenues to support our public services, and we will end up in a downward spiral to disaster.