HC Deb 26 January 1970 vol 794 cc983-4
8. Mr. Hall-Davis

asked the Minister of Technology whether he will now institute an inquiry into the cost effectiveness of the regional employment premium.

Mr. Varley

In association with my right hon. Friend the Secretary of State for Local Government and Regional Planning, we are considering what form any such inquiry might take.

Mr. Hall-Davis

If no such inquiry has taken place to date, on what was the decision based that it was right to drop the selective employment premium while retaining the regional employment premium? Was this based simply on hunch?

Mr. Varley

No. The House was informed when the Local Employment Bill was before it and during the Committee stage, in which, I understand, the hon. Member took part, the full reasons for this.

Mr. Ridley

Is the hon. Gentleman aware that there is an acute shortage of skilled labour in the development areas, particularly in the shipyards? What is the point of subsidising labour when it is in short supply?

Mr. Varley

That supplementary question does not arise out of the original Question. As to the shortage of labour, however, it is true that in certain selected industries in the development areas there is a shortage, but, broadly speaking, the regional employment premium has assisted employment prospects.