HC Deb 14 November 1968 vol 773 cc593-5
9. Mr. Wingfield Digby

asked the Secretary of State for Economic Affairs what is the present cost, per man, of providing new jobs in the development areas.

38. Mr. Ridley

asked the Secretary of State for Economic Affairs what was the cost, per new job provided, of development area assistance in 1963–64 and 1967–68, respectively, including tax relief, regional employment premium and all other forms of Government expenditure

Mr. Shore

The Government's programme of assistance to the development areas covers a number of objectives including the important task of strengthening the general economy of these areas. It would be misleading, therefore, to relate the total cost of this programme to the number of new jobs directly created by it.

Mr. Digby

Is not the expenditure per job extremely high? Much of this money could probably be better spent in a county like Dorset where average earnings are extremely low.

Mr. Shore

I understand the hon. Gentleman's concern for Dorset, but it does not help me to answer the question as to identifying particular job creation costs with the range of expenditures that go into regional policy.

Mr. Ridley

Is the Secretary of State aware that the fact that he has refused to give the figures in answer to my Question can be construed only as meaning that they are very unfavourable to the Government's case? Will he now be honest with the House and say what the figures are, because there is grave suspicion among the public that they are not getting value for money?

Mr. Shore

I have already indicated the difficulties of allocating total expenditure in support of development area policy to particular job creation—[Interruption.]—If the hon. Gentleman will listen, he will get a reply.

Mr. Ridley

But the right hon. Gentleman is not replying.

Mr. Shore

What I can mention, which is rather a separate point, is the cost per job under the Local Employment Act provision, because this relates to the cost of new jobs. This has been averaging about £630 per head.

Mr. Higgins

Has the right hon. Gentleman forgotten the figure which the Prime Minister gave in the debate on the Gracious Speech? Was not that £250 million? If the right hon. Gentleman relates this to the number of jobs he hopes to create, what is the arithmetical answer?

Mr. Shore

The hon. Gentleman is being for him a little over-simple. Of course I am aware of the total expenditure on development areas and in support of development area policies. I am asked in these Questions to state what was the relationship between this expenditure and the creation of new jobs. This straight away raises the question of the creation of new additional jobs, as opposed to such measures as may make it possible to retain old jobs.

Mr. Ridley

In view of the very unsatisfactory nature of that reply, I give notice that I shall raise the matter on the Adjournment at the earliest possible opportunity.