HC Deb 22 July 1971 vol 821 cc1673-5
Q3. Mr. Ted Fletcher

asked the Prime Minister what letter he has received from the Darlington Conservative Association making representations against the siting of the value-added tax office at Southend ; and what reply he has sent.

The Prime Minister

I have received no such letter, but the Association wrote to my right hon. Friend the Chancellor of the Exchequer about this matter on 29th June and he replied on 8th July.

Mr. Fletcher

Is the right hon. Gentleman aware that there are protests from every section of the community in the North-East about his outrageous decision to locate the office in a non-development area? In view of the increasing unemployment in the North-East and the fact that 25,000 school-leavers will be joining the labour market next week, will he reconsider his decision to locate the office in a non-development area?

The Prime Minister

It has been explained to the House on many, many occasions—if the hon. Gentleman would follow our affairs—that there has been gross exaggeration about this matter and that a very large number of the jobs which are required to administer the value-added tax will be spread up and down the country in the regional offices. A considerable number of those jobs will be in offices in development areas. There is no question of putting all the employment in one place, namely, Southend. What is happening at Southend is that the headquarters arrangements are being extended, and that is the logical and economical way of dealing with the matter.

Mr. R. W. Elliott

Will my right hon. Friend be assured that everyone in the North of England is fully aware that three-quarters of the jobs involved will be in the provinces? Will he accept the appreciation of the Northern Region that three of the regional offices are to be in the Northern Region?

The Prime Minister

I am appreciative of what my hon. Friend said. I know that the North-East, in particular, has lost a certain number of jobs because of the abolition of the Land Commission. On the other hand, it does not encourage those who are trying to bring about the dispersal of Government employment to hear a situation, such as that concerning V.A.T., grossly exaggerated.

Mr. Buchan

This may be the third or fourth time that the right hon. Gentleman has assured us that three-quarters of the jobs will be outside Southend. What we want to know is how many will be in Southend. In view of the unemployment figure of over 8 per cent. in Scotland, issued today, the shift of any potential job from a non-development area to a development area is of value to us all. Does not the right hon. Gentleman realise that?

The Prime Minister

As those needed at the headquarters to run V.A.T. will be part of the Customs headquarters organisation, the only logical and economical way of running it is for the office to be at Southend.