HC Deb 24 February 1971 vol 812 cc554-5
13. Mr. Mackintosh

asked the Secretary of State for Scotland what calculations the Scottish Development Department has made of the total estimated loss to Scotland of the Government's decision to phase-out the regional employment premium; and whether he has received representations from Scottish industry on this matter.

Mr. Gordon Campbell

The Government announced last October that the regional employment premium was to be paid in full until September, 1974. The total amount of regional employment premium payments in Scotland, on the latest figures available, for the financial year 1969–70 was £41.3 million.

Mr. Mackintosh

In view of this prospective loss of £40 million to industrial development, and with the statement in the Government's White Paper that the amount of money to be spent on industry and employment over the country is to decline by 7.1 per cent. per annum, how can the right hon. Gentleman go on saying that the amount of money to be spent on regional economic development in Scotland is not being diminished by the present Government?

Mr. Campbell

The statement confirmed that R.E.P. would be paid for four years from last October to the end of the seven-year period for which it was introduced by the last Government. This gives a considerable period ahead, removes uncertainty, and provides time to consider the economic situation in 1973–74 and what combination of measures will then be appropriate.

Mr. Mackintosh

I wish that the right hon. Gentleman would answer the question he is asked.

Mr. MacArthur

Will my right hon. Friend accept that the imposition of selective employment tax in Scotland has had a much wider significance than the regional employment premium? Will he accept that the removal of this tax would effect a much-needed boost to the whole Scottish economy?

Mr. Campbell

I agree with my hon. Friend that S.E.T. has been harsh in areas of Scotland. Of course, a number of things will happen during the four years R.E.P. continues to be paid. These are bound to alter the situation, and that will give us opportunities for considering other measures.

Mr. Ross

Can the Secretary of State tell us exactly what Scotland's share is to be of the additional expenditure on the S.D.A.? The Prime Minister told us that this year nothing is to be spent; the following year it is to be about £2 million, rising to a maximum in 1974–75 of £10 million. That is for England and Wales and Scotland. What is Scotland's share of that £10 million?

Mr. Campbell

The right hon. Gentleman ought to know, because he was involved in this, that the results will depend on how successful we are with the economy as a whole and, therefore, to what extent incentives will be taken up. If we can get nearly 40,000 new jobs a year in Scotland, as we did between 1960 and 1964, those incentives will be taken up to a greater extent.

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