§ 13. Mr. Goodhartasked the Minister of Public Building and Works what further representations he has received about the effect on the construction industry of Selective Employment Tax; and what replies he has sent.
§ Mr. MellishI invited representatives of the industry to meet me immediately after the Budget, and the effects of S.E.T. were discussed, and I have since had letters from them expressing their views.
§ Mr. GoodhartIs the Minister aware that the industrial correspondent of the Financial Times estimates the extra burden of S.E.T. for the building industry at between £30 million and £40 million a year? Does he dispute this estimate? Does not he concede that this would put up the price of houses and reduce the rate of housing building?
§ Mr. MellishI had a Press conference the day after I met the industry, and I said that the increase of S.E.T. would be between £32 million and £35 million, and that the N.F.B.T.E. estimate of about £35 on a £5,000 house is about right.
§ Mr. PavittIs my right hon. Friend aware of the way in which this extra twist will mean that thousands more will leave the construction industry to be self-employed, and of the disastrous effect this has on the trade union movement? 238 Will he discuss this problem with his fellow Ministers with a view to introducing an Amendment in Committee on the Finance Bill?
§ Mr. MellishI am aware of the danger of labour-only sub-contractors, whose numbers are growing. It is hoped very much that we shall be able to bring legislation before the House which will deal with that as a quite separate problem from S.E.T.
§ Mr. Chichester-ClarkIs not the Minister concerned from another point of view? It costs an employer £6 to get an operative on the site before he even does a stroke of work. Having given the industry a very sympathetic impression with regard to its case over S.E.T., will the Minister now show it some action?
§ Mr. MellishI have already said that I understand the industry's point of view. Representations are being made to other Ministers concerned. I can say no more than that at present.
§ Mrs. EwingIs the Minister really going to refrain from mentioning the effect on jobs as a result of S.E.T.? In particular, is he prepared to say that there will be no decrease in the number of jobs in this industry in Scotland as a result of the increase in S.E.T.?
§ Mr. MellishThe industry is one in which output improved by an average of 4 per cent. over the past five or six years with a lower labour force.
§ Mrs. EwingThat is no answer.
§ Mr. MellishI am answering the question as a whole; the hon. Lady asked me a question and she must wait for the answer. I am telling her that we are doing more work with fewer men employed, because the industry is becoming more mechanically-minded, using modern techniques and producing more with fewer men. I should have thought that the whole nation wanted that as a principle.
§ Mrs. EwingThat means fewer jobs.