HC Deb 08 November 1962 vol 666 cc1134-7
14. Mr. McMaster

asked the Secretary of State for the Home Department what steps Her Majesty's Government propose to take to implement the recommendations of the Hall Committee and to assist the Government of Northern Ireland to reduce the level of unemployment in Ulster; and if he will make a statement.

Mr. Brooke

I would refer my hon Friend to the statement made by my right hon. Friend the Chancellor of the Duchy of Lancaster in the debate on Monday last. I am also circulating in the OFFICIAL REPORT a copy of a statement made by the Prime Minister of Northern Ireland on 23rd October, with the approval of the United Kingdom Government, dealing more fully with the recommendations of the Report.

Mr. McMaster

According to the words used in the final passage of the debate— recorded in column 731 of Vol. 666 of the OFFICIAL REPORT—the Government are not at all satisfied with the problems of Northern Ireland, so I would like to press my right hon. Friend to answer this question: if the Government are not satisfied, will they address attention particularly to some of the proposals on which the working party could not agree, especially the opinion in paragraph 122 of the Report that, because of the dismal future forecast for employment in Northern Ireland, there should be a tax holiday?

Will my right hon. Friend look again at that proposal and devise some form of tax holiday which would encourage firms freely and willingly to go to areas of high and persistent unemployment. such as Northern Ireland?

Mr. Brooke

No, Sir. I cannot go back from decisions reached and indicated by the Government in the very recent past. In Monday's debate, my right hon. Friend the Chancellor of the Duchy of Lancaster said that the Report and its consideration did not close this matter and that the United Kingdom Ministers would continue to work very vigorously alongside Northern Ireland Ministers who tried to deal with the situation in Northern Ireland, about which I do not take so pessimistic a view as does my hon. Friend.

Statement by the Prime Minister of Northern Ireland in the House of Commons, Stormont, on Tuesday, 13rd October

1. I have the authority of Her Majesty's Government in the United Kingdom to make the following statement on the conclusions reached after consideration by the two Governments of the report of the Joint Working Party on the Economy of Northern Ireland, which is being published today.

2. The two Governments have carefully examined, in consultation, the proposal of the Northern Ireland Government for a subsidy of ten shillings a week in respect of all employees in productive industry which was suggested as a means of maintaining existing employment whilst new industrial opportunities are being attracted to Northern Ireland. The arguments in favour of a subsidy and the objections which have been seen to it are set out very fully in the report. The United Kingdom Government, while recognising that the Northern Ireland Government have attached great importance to this proposal, have reluctantly come to the conclusion that the serious objections both practical and of principle to a subsidy outweigh the likely advantages to Northern Ireland industry. They have concluded also that the possible tax concessions examined by the Working Party are not acceptable, for the reasons stated in the report.

3. However, the report endorses the existing measures, set out in Appendix IX of the Report, to assist employment and to induce industry to settle and develop in Northern Ireland. The two Governments recognise that these measures have met with considerable success in attracting new industry, and are resolved to ensure that adequate finance is available to sustain them.

4. In addition, in order to encourage the maximum activity in existing industry the two Governments agreed on the following measures: —

  1. (a)to accept the additional measures recommended by the Working Party, for 1136 stimulating the use of industrial advisory services, for improving facilities for the training of labour and for improving facilities for tourism, and action to implement these recommendations has been put in hand;
  2. (b) to maintain industrial de-rating in Northern Ireland;
  3. (c) to maintain substantial financial assistance towards co-operative publicity by the linen industry;
  4. (d) to extend the Coal Subsidy Scheme to oil. The Working Party drew attention to the economic disadvantages which derive from the fact that the present subsidy to industrial users of coal and energy derived from it does not extend to the users of fuel oil, and the two Governments have agreed in principle that it should be so extended. A scheme for this purpose, which it is estimated will add £350,000 a year to the cost of paying subsidies, is being worked out.

5.In addition, to assist generally in the development of the area the two Governments have agreed on the following measures: —

  1. (a) The Working Party expressed the view that there was a case on social grounds for an increase in the housing programme, and the United Kingdom Government have agreed that the present temporary additional Exchequer subsidy of £11 per house—which is at present financed from the proceeds of a special customs surcharge—should continue as a charge on ordinary revenue when the funds provided by the surcharge run out;
  2. (b) To give effect to another recommendation of the Working Party, arrangements are being made for the investigation, through a study which will be promoted by the Air Transport Licensing Board, of the possibilities of developing the transport of freight by air. Further consideration will be given to the question of the effects of the cost of sea transport on Northern Ireland industry in the light of the Working Party's observations when the report is received of the House Committee, which was set up last year by the Minister of Transport to consider the types and frequency of shipping services between Great Britain and Northern Ireland, the standards of service and the reasonableness of charges.

6.Short Brothers and Harland.

The Working Party noted that the future prospects of Short Brothers and Harland gave cause for concern. The two Governments have considered most carefully the representations made that the firm should continue in operation because of its significance to the economy of Northern Ireland.

The two Governments have together agreed that the necessary steps should be taken to provide the finance needed to enable Short Brothers and Harland Limited to complete the current order for ten Belfast aircraft for the Royal Air Force. I understand that a sum in the region of £10 million is likely to be required.

In addition when it was decided recently to place a further order for V.C.10 military aircraft, arrangements were made for a substantial share of the work to be sub-contracted to Shorts.

7. The two Governments agreed that the Report provided a valuable analysis of the problem but should not be taken to be the final word on the subject. They will continue with their close consultations to seek a long term solution to the Northern Ireland unemployment problem.