The Commons touch - John McFall MP

Published 24 Feb 2010 13:00

THIS week's news on unemployment is a stark reminder that it is far too early to say that the recession is over.

Last month, the official Gross Domestic Product (GDP) figures showed that the economy was growing again.

But we should not let them blind us to the real-life difficulties that families and individuals are still facing every day.

I have visited a number of countries in Europe and elsewhere over the past few months.

I have been struck by the fact that recession and unemployment are affecting them as well.

So it is important that we continue to support people and their jobs, until people in West Dunbartonshire and elsewhere are actually feeling the effects of recovery.

The Conservatives continue to call for immediate, deep cuts in public spending.

Again, we should not see these cuts as just figures - they would have real-life, human costs.

We could see thousands of public-sector jobs slashed, at a time when unemployment is already high.

We could also see cuts in the Scottish budget, hitting the public services many of us rely on, such as hospitals, schools and transport.

Last year, I held an event in Parliament with Professor David Blanchflower, a labour market expert and a former member of the Monetary Policy Committee which sets the UK's interest rate.

His message was clear - unemployment on this scale is not just a temporary phenomenon, but can leave lasting scars. We could permanently lose the skills of thousands of workers who become redundant.

Many people could leave the job market entirely, and we will lose their valuable input.

Perhaps most importantly, a generation of young people could fall into long-term unemployment.

Thousands are leaving full-time education each year and could find that there are few opportunities for them. That is why it is important to support them.

Without support, these are problems which would take generations to solve.

I welcomed the measures in this year's Pre-Budget Report to help young people find training and jobs, to help businesses survive through the recession, and to support homeowners.

It is true that the UK's budget deficit is too big, and cannot be sustained in the longer term.

It is important to remember that this increase in the deficit is due to the crisis that began in the banks.

That is why the banking system needs to be changed for the better,

As the chairman of the House of Commons Treasury Committee, I have called on the Government to provide more clarity about how it intends to cut that deficit over the next few years. My Committee will be looking at these plans closely.

However, Professor Blanchflower has recently said that the Conservative plans for immediate cuts could lead to UK unemployment reaching five million.

That would be a disaster for ordinary families in West Dunbartonshire.

We must remember that the costs of doing nothing would be much greater than the cost of helping people to stay in work.

It is crucial that all Governments provide this social support at a time of global economic crisis.

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This article appeared in Clydebank Post 24 Feb 10

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