House of Commons Hansard Debates for 20 Nov 1995 (pt 30)

10.25 pm

The Parliamentary Under-Secretary of State for Education and Employment (Mr. James Paice): It is a rare treat for the House to be reminded twice in one week of all the great features that Chester has to offer. I congratulate my hon. Friend the Member for City of Chester (Mr. Brandreth) on the juxtaposition of the two speeches, but also the way in which, in the first speech that we all enjoyed last week, he looked back at the great history of Chester.

I must admit that I was slightly relieved that he did not embark on that again tonight, not least because I might have been forced to wax lyrical about the city of Ely in my constituency, which has a history just as illustrious. I also congratulate him on the way in which he has seriously dealt with the many issues tonight. I am sorry that, on last week's occasion, the House was packed because it was the Queen's Speech, but tonight it is less full because of the Princess's speech.

The starting point for Government policy, and the point to which my hon. Friend referred, is the Government's belief that jobs are created only by profitable businesses which produce goods, products or services at a price and quality that a consumer wants. The Government's role is to regulate at the minimum level necessary commensurate with reasonable business and employment standards.

It is for that reason that unemployment in Britain is now less than in Germany, France, Spain or many other countries in the European Community. It is why, as my hon. Friend rightly reminded us, the Government have stood resolutely against the social chapter.

It is important to remind the House, my hon. Friend and his constituents of the absurdity of the notion asserted by the Leader of the Opposition last week, that he would sign up to the social chapter but would not necessarily go

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along with everything that was within it. The simple fact is that the social chapter involves majority voting. Once Britain signed up to it, we could be outvoted and forced to go along with burdens and regulations on employers. The Government's role is to create the right environment and framework for businesses to prosper. My hon. Friend has reminded us of the excellent state of the economy. I will not go through that again.

One matter to which my hon. Friend did not refer is our industrial relations record. It has been transformed. I am sure that we all forget, until we sit down and spend a little time reminiscing, how seriously bad it was in the late 1970s. Since then, Britain has been transformed into a paragon of industrial relations for the rest of the world. On top of that, we have slashed red tape and placed great emphasis on the growth of small businesses. We have developed a network of support organisations, to which I shall refer.

My hon. Friend referred to INWARD. I am grateful to him for acknowledging that INWARD, together with strong support from the local agencies was instrumental in persuading MBNA, the financial services company to which he referred, to locate in Chester. That is a tremendous success for Chester. It is the company's first operation outside the United States of America. It is a massive investment, with a substantial number of jobs. Most importantly perhaps, it is a tremendous success because the investment was won against strong international competition. It was helped, but not conclusively, by a Government offer of £7 million of regional selective assistance. Perhaps most importantly, in the words of the company, it

"selected Chester for the right people and education infrastructure, high quality business environment, and first class transport and communication links."

My hon. Friend referred to the unemployment situation. Sadly, it is higher than the national average, but it is changing fast. Indeed, since the peak in December 1992, unemployment in the United Kingdom has fallen by nearly 17 per cent., but Chester can beat that. Over the same period, unemployment there has fallen by more than 23 per cent., and it fell substantially again last week. The jobs summit that my hon. Friend convened--I salute him for his initiative in doing so--is going a long way towards tackling the needs of businesses and how to create those new jobs in the Chester area.

The single regeneration budget, to which he also referred, is playing a central part. A bid of more than £2 million for the Chester action programme will be used to create new jobs, more qualifications, new businesses, to enhance the achievement of more than 5,600 pupils and to build 100 new dwellings. It is an excellent example of the public, private and voluntary sectors working together.

My hon. Friend and the hon. Member for Ellesmere Port and Neston (Mr. Miller) referred to the Chester, Ellesmere Port and Wirral training and enterprise council--CEWTEC. My hon. Friend will know that, as Minister responsible for training and enterprise councils, I take a great pride in their achievements and in the way in which they have all improved their performance. I recognise and pay tribute to the improvements that CEWTEC has made, of which my hon. Friend reminded the House. This year, in the Chester area CEWTEC is providing 50 business start-up places, 1,400 adult training places, and 75 modern apprenticeships.