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Mountain Arms. National Arms Co. That is the first stage. I believe that it is impossible in the long term to achieve industrial revival when real rates of interest are running at 8 per cent. The rate of inflation here is 5 per cent. It is simply not worth investing in British industry when that kind of return can be achieved elsewhere.

As I have said many times, the great problem facing western capitalism today is to bring interest rates into line. That is why, although it may seem a long way from the west midlands, I believe that the summit conference that is shortly to be held must achieve the vital step of starting some movement so that interest rates can be brought into line. Some of the debts could be put on one side, although I shall not go into detail about that today.

World trade must be revived and interest rates brought down. That is the key to the recovery of western capitalism. These are serious times. Only through those two methods can we achieve a revival. We must ensure that industry has profits to reinvest. I am sure that the right hon. Member for Stoke-on-Trent, South agrees that there are great areas in the west midlands in which new investment is needed.

The big companies and the smaller companies that are growing up need a big change in their industrial objectives. That must be done through profits. Above all else, we must have joint action with the Japanese, the Germans and other sound economies—possibly the Americans—to draw the world out of its dangerous and vast depression. We must ensure that Britain's industrial base remains sound and profitable.

I am glad to follow the right hon. Member for Stafford and Stone Sir H. Fraser because I entirely agree with him about the great danger to the present world economic order. Friend the Member for Leeds, East Mr. Healey said recently in Birmingham that the whole banking system is threatened with collapse unless great industrial nations join together and follow one policy.

I am an extreme pessimist about the whole of our economic future. The numbers in work are decreasing rapidly, and the desecration of the industrial might of the west midlands means that the superannuation, pension and other funds upon which we rely for our future prosperity are in grave jeopardy. That message must be spelt out to those still in work. The industrial might of Birmingham is being desecrated; no one can doubt that.

There is a remarkable consensus among the CBI , the chambers of commerce, and such firms as Joseph Lucas and IMI , about what needs to be done about the destruction of the industrial might of the west midlands and the power base of industrial Birmingham. I represent the inner city constituency of Small Heath. The Government have placed a time bomb under the social fabric of our cities and their industrial life.

In Small Heath, 80 to 90 per cent. What do the Government think that means in social terms for the peace and harmony of our inner-city communities? It is devastating. A whole generation of school leavers will never know the dignity of work. Men and women throughout Birmingham have been made redundant. Some of them are family men with responsibilities, aged between 40 and 50, who know that they will never work again. That must be the background to the debate. The Government have brought the problems upon themselves, not least through their tremendous cuts in social services, which have been reduced to a shell in many parts of the west midlands.

That affects the old, the sick and the needy, and especially one-parent families. In many of the schools in Small Heath, 60 or 70 per cent. The social consequences of the Government's policies during the past two or three years, which have laid waste industrial Birmingham and the west midlands, are too grave for any of us to contemplate.

The Minister made a gramophone speech today. It was the same speech that his predecessor made last year and the year before. It was in contradiction of everything that the Tory party said in during the election campaign. Then the theme was that Labour policies were not working, and that the Tories would put things right.

The work force in Joseph Lucas in was 20,plus. This year it is 13,, with another 1, redundancies to come, together with another redundancies at Girling. The figure for apprenticeships tells its own story. Joseph Lucas used to take on 50 apprentices a year. This year, the figure has been reduced to 25 and next year it will be Yet those represent the skills of our industry on which any growth in Birmingham and the west midlands must depend. I have heard horrific stories about the British car industry.

We no longer have a car manufacturing industry in Birmingham and the west midlands—we have a car assembly industry. That is the heart of the problem. What can be done about it? I shall spell that out. First, there must be a dramatic change in the economic direction of Britain to produce investment in industry and to create jobs. That means an immediate increase in public expenditure in local government and health services.

We must use our oil revenue to invest in the future and to create new industries. What nonsense it is for the whole of our oil revenue to be spent on unemployment and social security benefits rather than on investment in the future of British industry. Secondly, we must spend money on real jobs for youngsters and on apprenticeships.

There is hopelessness in our constituencies when youngsters are training on the special schemes but know that that does not mean real jobs. They know that there will be no jobs for them at the end of the day.

We must create real jobs in industry. Thirdly, we must stop the ridiculous sales tax imposed on the British motor industry. It is nonsense to have a 10 per cent. I am not surprised that the component industry says time and time again that in no other area is there such a self-imposed burden on the products of British industry. Fourthly, as my hon. The Government must take immediate action about the flooding of Britain with motor car components from Spain and Japan.

The Prime Minister and Ministers talk about it—the Minister did so today, and I am sure that he was sincere. Ministers want to act, but they are not acting. They must act today. Have we all gone mad? Should we continue to allow that to happen in the midst of a recession and growing unemployment? What do the Government intend to do about the Japanese? We constantly send trade delegations to Japan, which return with words of comfort from the Japanese, who must be laughing while they bank the money from their import penetration of western Europe.

Italy has more sense; it does not allow any penetration from the Japanese motor market. France allows only 2 per cent. Britain has an import penetration of 11 per cent. The Government are charged with defending the British economy and the British people from persistent import penetration by the Japanese. They are doing nothing about it. We cannot any longer listen to the honeyed words of the gentlemen in Tokyo. We must take action immediately.

Fifthly, we must control manufactured imports. The volume of manufactured imports to Britain this year has exceeded, for the first time, the volume of British industrial production. That is a recipe for disaster It is also astonishing. Ministers of this Government have presided over that. We should immediately require that a minimum fixed percentage of components in all motor cars that are imported here should be made in Britain.

We must play fair with the British components industry, if necessary by using the measures that we are allowed to take under EC provisions. Will my right hon. Friend give way? Sixthly, we must develop sensible investment policies. For example, Lucas Aerospace drew to my attention a scheme at Huyton in which the Government provided the cost of buildings and plant and then leased them back to Lucas Aerospace.

That is one way to get things moving and to provide the necessary investment. Seventhly, we need to designate Birmingham and the west midlands as special development areas. I listened to what the Minister said about that. I hope that he does not mind my saying that he was prescribing sticking plasters when we need a blood transfusion. The Government's urban grant and grants from the EC are hopelessly inadequate.

We must attract EC regional grants, but we are not doing so. Why cannot Birmingham, which has the fastest growing rate of unemployment in the country, attract regional grant? Why is the Industry Act proving so deficient for the west midlands? Why is the Science and Technology Act hopelessly inappropriate to the needs of the west midlands now?

Eighthly, we need massive urban aid and partnership grants. We need infrastructure. As the CBI said, we need green belts. It should be possible to whip out the old sewerage pipes and cellars and provide green field sites for industry in the heart of our blighted industrial areas. We need tremendous house building and house improvement schemes as well as general environmental ones.

Finally, as we must now choose between unemployment at the beginning of the life cycle for school leavers, or earlier retirement for people at the end of that cycle, it would be much more intelligent to provide Government funds so that people who have worked all their lives in industry and want to retire early can do so. There are things which can be done now, which Birmingham wants to be done now and which the west midlands needs. Let the Government get on and do them.

It is rather a pity that this debate, which is on such a serious subject, should lend itself to people who make what are clearly partly polemical points. I shall try to avoid that. I have noticed that the motion is not exactly couched in moderate terms. There is not much common sense about it. There is no mention, for instance, of the world slump. Nor is there any mention of the competitiveness, or lack of it, of firms in the west midlands.

Nor is there any mention of the need there, which we all agree exists, for some of the higher technologies. The motion is clearly drafted in party political terms. It bears no relation to the true state of affairs in that part of the country. This subject was debated only a fortnight ago. I have read that debate through again. One naturally wonders what new or helpful ideas can come from us today.

It is a fallacy to think that from our deliberations today will come a solution or a wonder remedy. In my experience, the House is short of hon. Members with industrial experience, either as managers or as workers. It must infuriate industrial leaders who face difficult circumstances to hear some people pontificating here when they have no real knowledge of the problems involved.

Nor does the House have much influence on the state of the world economy. We all know that we are now going through the most serious recession since the s. Moreover, we all know that it was caused by the fantastic rise in the price of oil. Despite what defeatists say, the fall in the price of oil may give British industry, including that in the west midlands, just the stimulus it needs—more, perhaps, than anything that any Government can do.

Of course, I agree with those hon. Members who have talked about the imbalance of tariffs between ourselves and Spain and the unfairness of the trading customs of many foreign companies. We in the west midlands are new to slump. Unlike Scotland and the north, we have never really had bad times before. Indeed, when there were bad times, people flocked to the midlands for work. Now the bad times in the midlands are as bad as in Scotland. It is not that people complain. Members never stop complaining, but I find that my constituents, at whom I marvel, never complain.

They do not blame the Government, the Prime Minister or me. Traditional industry in the midlands was hit by the world slump. It was probably too production-orientated. Marketing and sales were sometimes neglected. Firms made goods and hoped that there would be customers all over the world to buy them.

Moreover, basic research and development was not always all that it should have been. Then there was the overmanning and lack of competitiveness in many companies. That has now been largely put right. In the west midlands, we are far too dependent on traditional metal-bashing and engineering industries. We do not have enough of the higher technologies. We are far behind Scotland, which now has a high proportion of such new high technologies. Moreover, we must think whether industry should cater more for the needs of the leisure and service industries, the needs of which are bound to increase as the working week becomes shorter, people retire earlier and holidays get longer.

One complaint of industry in the west midlands has, and which I wholeheartedly share, is the colossal burden of rates, about which we have heard nothing from the Opposition. We have heard nothing about the awful burden that the West Midlands county council puts on every business in that part of the country.

We also have to bear the charges of the nationalised industries, including energy costs. Those charges rise inexorably, although there has, at last, been some remission. Those monolithic corporations, which are not subject to competition, have not slimmed as private industry has done and are still barely aware of the realities of commercial life. The sooner they are taken over by private enterprise the better.

One vital sector which my hon. Friend the Minister mentioned is the need to foster the small business. Quite a lot has been done—all of us are aware of that from our constituencies—but more could be done. In particular, loans from the banks in the second or third year of a new business, when it is just getting it second wind, are still too hard to get and—if my hon. Friend the Minister will listen—too expensive. Industry in the west midlands looks to the Budget for some encouragement.

The most important contribution that the Budget could make is to improve morale. Morale is everything, in peace or war, and morale, I am afraid, is low in the west midlands. We must have confidence and hope from my right hon. A reduction in personal taxation will help demand and industry must be ready to satisfy it.

The upturn will come and firms must make the necessary preparations. I was distressed the other day to hear the head of a huge construction business say that already it was short of bricklayers and was not training enough. That must be put right. Fraser , who spoke shortly and so well, referred to the vital importance of interest rates.

I realise that that is a world problem more than our problem. However, with inflation reducing and interest rates remaining so high, it is difficult to borrow money, get hold of staff, obtain raw materials, make products and then have a profit at the end. That is a problem which I hope will be dealt with by the Government during the summer.

Industry in the west midlands does not expect or want handouts but it expects parity with the other regions of the United Kingdom. The regions of England are, in their way, quite as important as places in Northern Ireland , Wales and Scotland. Many of us think that the building industry could be busier. One suggestion is tax help for householders who maintain and improve their property or who engage in improvements, for example to save energy.

Such a scheme would help builders and reduce the large black economy, which has been with us for years in the west midlands. The black economy operators would have to produce proper bills for householders, who would then claim tax relief on the amounts set out. Such schemes are only palliatives. I do not believe, despite the speech of the right hon. Member for Birmingham, Small Heath Mr. Howell , that people in, the west midlands expect vast public works.

They ask in their sensible way, "Where is the money coming from? A new scheme whereby the Government produce a small sum which can then be topped up by a much larger sum by private enterprise is extremely sound. I am glad that Halesowen, for the first time in history, has had some tangible benefit from the Government. We must not be too depressed. In the west midlands we have the brains, the entrepreneurs, the finest skilled work force in England and the right attitude.

In some respects our training may need improving, especially in higher technology, but young men and women in the west midlands want to be trained, want to learn a job and, unlike others in some parts of the world, do not all want to become school teachers, for example. When the world upturn comes, as it surely will in , we may see a considerable recovery in the west midlands, which is so well placed, geographically and in other ways.

Labour Members play a gramophone record of gloom. It never does, either in public or private life, to exaggerate our fears. I have the greatest faith in the Government and so, according to the polls, do an increasingly large number of the electorate. I believe that the Government's sound monetary policies will create the right climate for a proper and sustainable expansion.

I also have the greatest faith in the men and women on the shop floor in the west midlands, who understand fully what is happening and the reasons, who will surely respond when the time comes. We have just heard from the hon. Member for Halesowen and Stourbridge Mr. Stokes what I think can charitably be described as a fairly predictable speech. He seemed to argue that his constituents never complain to him about Government policy. There really can be only one reason for that. They know him to be such a devout supporter of this appalling Government that they think it a waste of time to make any representations to him.

I think that his two colleagues on the Government Front Bench may have read behind those veiled panegyric utterances some warnings about what the hon. Gentleman considers is necessary for the health of the west midlands. I am delighted to have the hon. Gentleman's affirmation in that rather wan smile that wafted across the Chamber. We have now had in the lifetime of this Government four debates on the industrial decline of the west midlands and the consequent surge in unemployment.

At each of those four debates loyal Conservative Back Benchers—we have had them again this afternoon—have tried to excuse the Government by claiming that because of the concentration of the motor car industry and the component industry that decline in the West Midlands was inevitable, that Labour was as much to blame as the Conservative Government, and that, of course the world recession was the overriding reason behind the whole disastrous collapse.

Well those are convenient excuses for what has been happening, but did any of those Conservative Members with west midland seats, who are soon to be an extinct species— [Interruption. Did any of them warn their electorates that the Conservative Government would treble unemployment in our area? Did they warn that there were not factory walls long enough anywhere in the west midlands to accommodate the thousands upon thousands of unemployed in a Saatchi and Saatchi-type advertisement, riot of hired performers, but of real live unemployed?

Do those Tory Members of Parliament not think now in all honesty that they were guilty of some misrepresentation in their unkept promises to mop up the dole queues? Did they warn that the Government's policies would actually close down factory after factory in the thriving west midlands?

In these four years of Conservative Government policies the west midlands—the great heartland of Britain's industrial activity—has suffered a 30 per cent. Unemployment has trebled. No Conservative manifesto that I read spelt out those promises. At each of the four previous west midlands unemployment debates over the past four years, Ministers—this brace of sitting ducks is only the latest in a series, kept in perpetual motion so that he cannot be too easily peppered—have presented the Government's case.

Did any of the Ministers who were put up at the Dispatch Box tell us the actual facts of what was happening in the west midlands? They made excuses. They said that things would soon be looking up and that the worst was about over. Well, we shall see. The Cambridge econometric January forecast presents a much more pessimistic forecast than its October one.

Can the Minister assure us that those figures will not ensue from present policies? He has no eagerness to leap up to deny them. Where is the promised upturn? The latest regional chamber of commerce survey does not augur well. More firms think that their turnover will worsen. Investment in plant and machinery has been revised downwards. Compared with the survey, fewer firms were reporting increases in United Kingdom and export orders and more were reporting decreases.

There were more cash flow problems. All those considerations can point only one way. They mean a further rundown in the labour force throughout the west midlands. In terms of my constituency, the contraction and cessation of industrial activity has been catastrophic. In previous debates on the west midlands situation I have itemised the litany of destruction caused by the Government's policies.

I do not want to weary the House, but in all fairness to my constituents I have to make the following comments. Massive redundancies have been forced upon many companies in the area. Some companies have enforced those redundancies more willingly than others.

Some have tried to keep their work forces as best they could but they have been driven by the hard economic circumstances to dump people whom they wanted to keep. Sturney and so on. Redundancy payments and the relief of the dole queue ease the situation to a small degree, but no one who has witnessed this deprivation of work among skilled workers, and indeed among unskilled workers, can fail to have sensed the affront to human dignity or the denial of personal fulfilment that these people suffer.

Most of us who have constituency problems know only too well of the great increase in family problems that ensues. Suffering on this scale was not inevitable. It has not been an act of God. It is the result of a series of acts by this Government. The suffering among the ethnic minorities—there are large number of these people in the west midlands—is of course directly increased by the sad and quite inexcusable extent to which covert discrimination is practised.

The figures are available. In the area covered by the DHSS office in Smethwick, which does a marvellous job coping with the problem in which it is immersed, the number of unemployed people receiving supplementary benefit has risen from 1, in May —already too high—to 8, in February , and the total number claiming supplementary benefit in that period has risen from 7, to 20, In all humanity, it cannot go on like this.

The Government must alleviate some of the difficulties. What needs doing? It is all very well all of us complaining, but some of us have to make constructive suggestions. I think that one or two have been made from both sides of the House.

A number of colleagues on both sides of the House have argued for assisted area designation for the region. Surely all the relevant criteria apply here. Assisted area designation should be introduced. Although I am not happy about the prospect of import controls and have always argued against them, I am now persuaded that they should be applied very selectively where inequitable tariffs exist—certainly in the Spanish case. But I remain perturbed—perhaps my colleagues will part company from me here—at the prospect of import controls which would adversely affect the Third world and its developing patterns of trade.

There is not nearly enough Government subvention for essential innovation in advanced technologies, because it is clear that that drive into the future, with its needs, is not going to come from local or multinational industry here in Britain. There is a very strong case for reconsidering energy costs for industry, in view of the quadrupling of those costs over the past decade. We all receive regular representations about the impact of rates on industrial activity.

It may be marginal, but perhaps we should consider the need for industrial derating. It is a nonsense that the problem of void rating has not been tackled. If there is an upturn, an awful lot of roofs will have to be replaced in the west midlands. The small engineering firms investment scheme should have much more funding. All or some of those measures might help a little, but primarily we need demand in the economy to get that great industrial heart of Britain beating again.

The Government can create that necessary change in the economic climate by reflating—however touchy a word that is to them, and however much they dislike it—but there are no signs that they are prepared to do so. The only real hope for Britain is that the electorate will decide within this year that they have had enough of Thatcherism and that they will return a Labour Government that can, and will, get this country under way again.

The point that has come out most strongly in most of the speeches so far in the debate is that unemployment is the most serious issue in the west midlands at present. That is certainly the case in my constituency. I suppose that it is not surprising that unemployment has risen more sharply in the west midlands than in other regions in the past decade.

The west midlands is, after all, the manufacturing centre of this country and manufacturing industry has been particularly badly affected by depressed world markets, by currency fluctuations and by domestic Government policies since Indeed it is significant that manufacturing output peaked in early just at the time when the last Labour Government took office.

Since then it has declined by almost a quarter. It is an inevitable consequence of this decline in manufacturing output that unemployment in the west midlands has risen from well below the national average to well above it. It has risen from just over 46, in February to about , today, or from 2 per cent. The Labour party would do well to remember that it has been in government for rather more than half the time since , so it shares the responsibility for this severe decline in manufacturing output and for the steep rise in unemployment during the past nine years.

Obviously, I am particularly concerned about unemployment in my constituency which, for the 30 years after the war, enjoyed an exceptionally low rate of unemployment. Early in when the Labour Government took office, people were out of work in my constituency. Now, 5, people are out of work in the Leek parliamentary constituency. Despite this steep rise in unemployment, my constituency receives no special help, apart from assistance which the Development Commission has provided for the town of Leek and the moorlands area surrounding it.

We are grateful for this help, which is making a real contribution to helping small businesses. But, given the problem, it is not very much. Unemployment in Leek is accentuated by the fact that it borders Stoke-on-Trent. Many of my constituents are—or before they lost their jobs were—commuters to that city. We are told in the Leek constituency that we cannot have any special help because a good deal of the constituency is in the Stoke-on-Trent travel-to-work area, and that the unemployment rate in Stoke-on-Trent is just about the national average.

However, that argument does not take into account the fact that my constituents are disadvantaged in getting new jobs in Stoke-on-Trent compared to those living in the city. When my constituents seek employment in Stoke, in competition with residents of Stoke, employers inevitably tend to take the person who lives nearer the job rather than someone who lives five or 10 miles away, particularly given the winter weather in north Staffordshire. My constituents therefore find it more difficult to find new jobs than those living nearer the jobs and, consequently, unemployment tends to be higher in my constituency than in other parts of the Stoke-on-Trent travel-to-work area.

I ask my hon. Friend the Under- Secretary of State to consider this matter again. It is a problem which faces not only my constituents but constituents in other parts of the country bordering large cities. We are told that the present high level of unemployment is a consequence of excessive wage claims, restrictive practices, overmanning, bad labour relations, managerial incompetence and lack of investment.

Industries in my constituency cover a wide range of manufacturing activity and the work force has a wide range of skills. The people are hard-working, but not highly paid. Labour relations have always been good and there have been few strikes. Firms have invested in new plant and equipment. My constituency has a good labour force that is engaged in efficient factories and mills. Management and unions are puzzled by the fact that, having done all the right things, they have not avoided the consequences of different behaviour.

High unemployment has afflicted the area despite the exemplary behaviour of both management and workers. The steep rise in unemployment during the past nine years must provide a strong case for special help.

But, much though we would appreciate such help, it is important to recognise that the best way to help Leek and the west midlands is to revive the national economy. Leek and the west midlands were prosperous and enjoyed full employment when Britain was prosperous and enjoyed full employment. But a return to prosperity will not happen automatically. The Government must act to raise aggregate demand for goods and services and, in turn, the demand for people to produce those extra goods and services.

There are three ways in which this can be done. First, the Government should cut industrial costs by abolishing the national insurance surcharge and by reducing energy prices to industry. Secondly, they should undertake worthwhile public sector investment projects. Thirdly, they should cut direct and indirect taxes and so leave people with more money to spend, which will create demand for goods and services, and so create demand for people to produce those goods and services.

The effect of those proposals would be to increase employment, which is what all hon. Members wish. We wish to bring the unemployed back into employment. Under-utilised capital equipment should be more fully used instead of standing idle or partially idle as it is now. If there was high demand, there would be more wealth for all of us to share. Unemployment in the west midlands is a waste of resources.

It is socially damaging and divisive. Its reduction should be the Government's first priority. Friends have spoken eloquently about the problems of our region, Birmingham, the black country and their constituencies. They will forgive me if, on this occasion without apology, I speak about the problems of my constituency and borough.

Members have quoted statistics about the decay of the west midlands economy. We have had the highest increase in unemployment of any region during the past few years. We have the worst long-term unemployment in the country, and we have had the greatest contraction in our employment base.

Within that gruesome record, the consequences to Dudley have been the most appalling. Not only is it a microcosm of the west midlands, but what has happened in the region has happened to its greatest degree in Dudley. Unemployment in the region has increased by between and per cent. Juvenile unemployment used to be the second lowest in the country, but now it is among the highest.

The west midlands forum of county councils said in August last year that in the Dudley-Sandwell travel-to-work area the increase in unemployment was greater than anywhere in the West Midlands. However, even that understates the problems of Dudley. Many in the northern end of the borough, for example, in Coseley and Sedgley, register for unemployment in Wolverhampton, so their figures do not appear in the totals for Dudley and Sandwell.

Most families in Dudley have members or close friends who have been thrown pitilessly out of work. No sector of our economy has been spared. The list includes large firms, small firms, men in the prime of their careers, young men wishing to start work, women workers, part-time workers, private sector workers and local authority workers. Wherever one looks, there is terrible devastation.

Foundry men, school dinner ladies, lorry drivers, shop workers and bakers—the list is endless—are losing their jobs. The high unemployment is no accident and has little to do with the world recession. We all know that there is a world recession, but where did it start? It started in Britain as a result of this Government's policies. It is worse here than anywhere else in the industrialised world and it is becoming still worse.

We have been told that oil prices should be blamed. I cannot imagine how oil prices can be blamed for a recession in the oil-richest country in Europe. Stokes , who I regret is not in the Chamber—. I beg the hon. Gentleman's pardon. He is a good friend of mine, although we differ politically. He talked about rates, but we have been suffering from a Tory council in Dudley for goodness knows how many years, with some of the lowest rates in the country, and we still have unemployment.

Rates have nothing to do with it. Yet another reason adduced by Conservative Members is that unemployment is our fault. It has come upon us in retribution because our workers are lazy, mutinous and hell-bent on the destruction of their jobs. That theme is taken up from time to time by the Prime Minister when she believes that she can get away with it in front of a sycophantic audience. It is the most preposterous allegation ever made by the enemies of the trade unions on the Conservative Benches.

I could echo almost word for word the peroration of the hon. Member for Leek Mr. He told us that his constituency , like mine, has a loyal and hard-working work force. In the 13 years that I have represented Dudley we have had no major strikes. Firm after firm, and shop steward after shop steward, could tell us about the good industrial relations there.

One can ask the chamber of commerce, the trade council, large firms or small firms—the answer is always the same. Yet scores of efficient firms have been laid low and thousands of diligent and loyal workers have been thrown into idleness. We need help in Dudley. The enterprise zone is no solution. Friends do not believe that Dudley has purloined jobs from their constituencies as a result of achieving enterprise zone status. If anything, it is an albatross round our necks.

Few new jobs are being created, as I have always prophesied. Most of the jobs that have been created are in steel stockholding and not in productive industry. The firms threatened are not other firms in the region but small firms immediately outside the boundaries of the zone. Above all, Dudley needs a massive infusion of public expenditure to keep men in jobs instead of paying them to be idle. Conservative Members ask, "Where will the money come from? There will be a drastic reversal in the torrent of unemployment pay and supplementary benefits into a beneficial flow of income tax payments from those happy to be back at work.

Everyone knows that the money will come from there. We desperately need such public expenditure. I echo many of the remarks of my hon. We need new housing. The present housing stock must be repaired so that many thousands of families can have decent living accommodation.

We desperately need more medical facilities and a better sewerage system. We need a better flood control system, because parts of my constituency are flooded regularly each winter and it is high time that something was done about that Victorian relic. We need a new transport system—a black country road route—from the enterprise zone, if it is to produce jobs, giving access from my part of the country to the national motorway system. As my right hon.

Howell said, we need a serious job training programme, not just for apprentices as he suggested, but for 30, 40 and year-olds. Men should not feel that they have been thrown on the scrap heap at the age of 50, although we should be able to offer them earlier retirement if they want it. Our region has been a region of immigration since the s. The phrase "Get on your bike" was known to us long before the Secretary of State for Employment used it. In the s, people in this country got on their bikes to come to the west midlands to find work.

They do so no longer. Instead, the people of Dudley and the other proud boroughs of the black country now turn desperately in every direction to seek work. They have nowhere to go. They have little hope. They pray urgently for the opportunity to bring about the end of a Government who have calmly and indifferently watched such things come to pass.

As I listen to this debate I feel more and more sorry for the Opposition. My heart is beginning to bleed for their predicament. One can see how the situation has come about. I wish that the hon. Member for Warley, East Mr. Faulds would read the polls as carefully as he reads his lines. If he did, he would know that there is no question of a Labour victory at the next general election. One sees exactly how Opposition minds are working: "Gracious, we are in terrible trouble.

The polls are down. We may lose Bermondsey. What shall we do? Of course, let's have another debate on unemployment. We had a debate on that subject two weeks ago, but that does not matter. One is very sorry to see the charade that is being played out today. I cannot help feeling that it is a little like Tommy Cooper trying to saw a lady in half.

The trick is supposed to end with the lady, whole and unscarred, stepping from the cabinet. However, if Tommy Cooper did it, he would either slice her clean through the abdomen, or cut off his own thumb. One can see that happening to the Opposition. People are not nearly as stupid as Labour Members think they are.

We have been told, not once but several times, in the sound and fury that has been generated on the Opposition Benches this afternoon—as Shakespeare said, "signifying nothing"—that this Government are responsible for unemployment in the west midlands. When they say that to people in their constituencies, the answer will come: "Wait a moment, if the Conservatives are responsible for unemployment in the west midlands, who is responsible for it in America or Australia or Canada?

In France—a mere stone's throw away, and no doubt a Socialist paradise—Mr. Mitterrand has engineered exactly the same unemployment. There are other countries, too, such as Italy. There is also Germany. Members were to listen, they might learn something. If Germany had not sent out all her itinerant immigrant workers, her unemployment figures would be just as serious as ours. Some hon. Members, particularly the right hon.

Howell , mentioned import penetration. I should have liked to buy a totally British car, but the only British car that met my requirements had a Honda engine. Why is a Honda engine in a British Leyland car? The answer, presumably, is that a decision has been made by those responsible in BL that we cannot produce in this country an engine suitable for that car. Friend the Under-Secretary listed all the things that had been done for industry in the west midlands.

That act alone will have saved many jobs in the west midlands. Friend gave a long list of what has been done. I happen to believe that it is important that so much has been done to help small businesses to start. Many people have jobs because of that help. I sometimes wonder why Labour Members do not try to master what has already been done to help the young unemployed, about whom most of us are extremely worried.

Do the Opposition know nothing of the scheme, recently announced, whereby all school leavers will either go to a job or to training? Does that mean nothing? I should have thought that it was worth mentioning. The help for new technology in our area is crucial. Assistance for projects introducing the new technologies, which are vital if we are to be competitive, is available from the research stage, through the design stage, development and launching of a new commercial project.

That is immensely important. I could go on listing the ways in which help has been given, but I shall not do so. It would be infinitely better if everyone tried to help to overcome the serious situation that exists. The most recent community programme—one of many—interested me considerably. Its aim was to make available , jobs—temporary jobs admittedly, but jobs none the less—for people who have been out of work for some time. The idea is to produce projects that will help the community as a whole.

In common with many of my hon. Friends, I looked at the scheme with great care. I went through the suggestions made, and I thought that, for the Birmingham area, the suggestion for the clearance of canals and footpaths would be of immense value. In fact, Birmingham has more miles of canals than Venice, and many of us are interested in a project of that nature. However, when I wrote to the chief executive of the council, I was told that we could not do that because the unions objected.

What a pity. Why should that happen, when this scheme would help some people who had been unemployed for a long time? It is possible that the west midlands depends more on manufacturing than any other region. The figures show that 40 per cent. That is why we have suffered while other parts of Britain have benefited from the recent consumer boom.

But our area needs manufacturing industries, and there is much spare capacity in manufacturing industry in the west midlands. I was interested to hear the hon. Member for West Bromwich , West Miss Boothroyd talk about the CBI and regional help, but surely the CBI, in common with other business groupings in the west midlands, is not asking for assisted area status.

The CBI says clearly—how I agree with it—that jobs can only be created by private enterprise. Member for Small Heath one thing and me another. Perhaps the right hon. Gentleman and I should put our heads together afterwards. It may help if I read a letter from the CBI.

It says: When this subject was debated on 7 February several. MPs argued that the region should be given some form of assisted area status. It might be helpful, therefore, to know the reasons why the regional CBI, after some debate, came down against this proposal. If the right hon. Gentleman has received a letter which says something completely different, I shall give way.

Park , Wolverhampton, North-East Mrs. Short and others, along with myself, had a two-hour discussion with the CBI. It is completely divided. The younger members present at the meeting wanted assisted area status in order to attract EC grants. It is true that nationally the CBI is against it, but in the west midlands it is divided, and the more intelligent want it.

That will teach me to give way to the right hon. Nothing that he said made any difference at all to what I have said because he has acknowledged that the CBI has come down against the idea which is what I was trying to tell the House. There are three vital points. First, business costs must be reduced and rates comes into that.

Member for Dudley, East Dr. Gilbert must understand that rates have a great deal to do with industries' costs. We must reduce or abolish the national insurance surcharge and the cost of energy. Secondly, we must reduce unfair competition, a point which has been made and which I only wish to support. Finally, we must increase capital investment in motorways. I regret that we have heard nothing lately about the channel tunnel, which would help the west midlands greatly.

There is no magic solution to the problems, but let us at least acknowledge that there are certain needs that must be met. However, in the final analysis it is the west midlands industries, with their own expertise and application, which will successfully surmount all the problems. Member for Birmingham, Edgbaston Mrs.

Knight chided Labour Members for choosing this subject for debate and questioned why. The answer is that unemployment is the most important issue in Britain today. It refuses to go away despite the fact that the Government may wish it to do so. As one famous comedian said—whether it was Tommy Cooper , Eric Morecambe or Ernie Wise I do not know—the Government have to get out of this if they can. Ashley and the hon.

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