HC Deb 16 May 1966 vol 728 cc897-9
13. Mr. Dalyell

asked the Minister of Labour when he proposes to introduce his Bill on the repayment of Selective Employment Tax; and whether he will provide special consideration to firms taking on men over 55 years of age in the mining industry who have been declared redundant.

Mrs. Shirley Williams

On the first part of the Question, I would refer the hon. Member to the business statement made by the Leader of the House on 12th May. As regards the second part, I cannot add to what my right hon. Friend the Chancellor of the Exchequer said in the course of the Budget debate.

Mr. Dalyell

Should there be a reluctance to employ such people, may we have an assurance of action?

Mrs. Williams

We believe that the S.E.T. should encourage the employment in manufacturing industry of miners of the age group referred to, and this should deal with part of the problem which exists.

14. Mr. Peter Mills

asked the Minister of Labour to what extent the Selective Employment Tax will affect the number of unemployed in the South-West, particularly in North and West Devon, in view of the number of part-time workers employed in the holiday trade.

Mrs. Shirley Williams

It is too soon to attempt to estimate the effect of the tax on employment in particular areas. The Government will keep a close watch on its operation throughout the country.

Mr. Mills

This is all very well, but the Minister knows that this will have serious consequences in the South-West, causing grave unemployment. May I ask the Minister what can be done to help this very real problem, as there is very little alternative work in some of these areas?

Mrs. Williams

The hon. Gentleman may be aware that the unemployment figures in the South-West have fallen considerably under the present Government and their immediate predecessors. I would point out once again that assistance is being given both by investment incentives as proposed by the Board of Trade, and by additional incentives to manufacturing employment. This should assist the South-West, just as it will assist other hard-hit regions.

Mr. Nott

Is the hon. Lady aware that tourism is Cornwall's second largest industry? Investment incentives for tourism have been abolished, and this will have a most serious effect on Cornwall where a large number of people are already unemployed.

Mrs. Williams

The hon. Gentleman may be aware that many of the employees in the tourist industry are part-time temporary workers. The hon. Gentleman may also be aware that at the present time there are more vacancies for employment in the South-West than there are people seeking employment.

Mr. Pardoe

In view of the serious effect of the tax in the South-West, and particularly in Cornwall, will the Minister make representations to her right hon. Friend the Chancellor of the Exchequer to ensure that there are differential rates for development areas?

Mrs. Williams

I repeat that the Government will bear in mind the effect of this tax on the various regions. I also repeat that the White Paper on investment incentives gives an opportunity to development areas which is quite new and which will have a great impact on their prosperity.

Dr. David Owen

I welcome the remarks made by my hon. Friend, and I agree that she has done much to help the South-West, but we feel that there should be some regional flexibility in the application of the Selective Employment Tax. We shall be grateful if she will bear this point in mind.

Mrs. Williams

I thank my hon. Friend for what he has said. I can assure him that we will bear this in mind.