HC Deb 11 May 1967 vol 746 cc1678-80
16. Mr. Marquand

asked the First Secretary of State and Secretary of State for Economic Affairs what effect he estimates that the proposed regional employment premium will have on the annual average seasonally-adjusted rate of unemployment in the regions concerned, and in the United Kingdom as a whole, between the end of 1967 and 1970.

Mr. M. Stewart

If the premium were to be introduced at the median rate of 30s. per week for men it might reduce the average disparity between unemployment in development areas and the country as a whole by around a half over a period of the order of three to five years from its introduction. It is not possible to be more precise than this. Unemployment in the United Kingdom as a whole might fall by about half as much as the fall in the development areas.

Mr. Marquand

Is my right hon. Friend aware that most of us on this side of the House regard this proposal as one of the most imaginative in regional policy that we have yet had? But is he further aware that it becomes clear from his Answer that it is not going to have a very significant effect on unemployment in the regions between now and 1970? Will he say what other steps the Government will take to increase regional development in the short term?

Mr. Stewart

I do not think I could agree with my hon. Friend that this is not going to have a significant effect, but I quite agree that this is only one measure and we must proceed with the rest of regional policy, with the proper use of industrial development certificates, with the policy of dispersal, with advance factories and improving the infrastructure of the regions. It is one measure among many, but I think it a useful one.

19. Mr. Blenkinsop

asked the First Secretary of State and Secretary of State for Economic Affairs if he will introduce legislation to implement the proposal for a regional employment premium.

Mr. M. Stewart

The Government are still considering the advice they are receiving on the proposal.

Mr. Blenkinsop

Will my right hon. Friend make an early statement, because many of us in development areas—for example, in the North-East—believe that an early statement of the Government's intention to go ahead with this proposal could deter firms from moving out of these areas as some firms are doing?

Mr. Stewart

I shall take note of what my hon. Friend has said, but I said when introducing this proposal that although we wanted full discussion it must not be dilatory and I have this still very much in mind.

Sir J. Eden

What is the assessment which the right hon. Gentleman puts on the representations or reactions which have so far come to him?

Mr. Stewart

I do not think it would be sensible for me to give a sort of provisional and perhaps ex-parte judgment. There will be further occasions to come.

Dr. Dunwoody

Can my right hon. Friend tell the House whether, when the legislation is introduced, there will be, as a part of it, machinery to enable a variation in premium as between one area and another and a variation in the premium itself from time to time so that the premium may be an effective means of ending the problem of hard-core unemployment in development areas?

Mr. Stewart

I note that question with interest, but I think it is exactly the kind of question I should not answer now. I do not want the process to be prolonged. Our job in the fairly short term is to weigh up the representations we have received before bringing legislation before the House. The view expressed by my hon. Friend has, of course, come to us from more than one quarter.