HC Deb 10 May 1971 vol 817 cc17-8
23. Mr. Strang

asked the Secretary of State for Trade and Industry what further representations he has now received in connection with his decision not to continue payments of regional employment premium after 1974; and what replies he has sent.

Mr. Anthony Grant

I can trace only one letter, to which I replied that R.E.P. was expensive, wasteful, and had not lived up to the claims made for it when it was introduced.

Mr. Strang

Is it still the Government's intention to spend the money saved by the abolition of R.E.P. on improving the infrastructure in the development areas? Will the Government in due course identify those projects which are going ahead as a direct result of the abolition of R.E.P.?

Mr. Grant

No, Sir. It is certainly the purpose to stop wasteful expenditure in due course, and it will obviously be much more sensible to apply the money saved to improving the infrastructure. As to how the amount works out, the hon. Gentleman will have to wait and see.

Mr. Bob Brown

Does the hon. Gentleman appreciate that there is not a great incentive to existing industry in development areas to expand once R.E.P. is abolished? Surely the Government have something in mind for replacing R.E.P. for the development areas?

Mr. Grant

I will not speculate on policy decisions that may be taken between now and 1974. There are already substantial incentives to existing firms in the development areas.

Dame Irene Ward

Can my hon. Friend tell me how we are using the Local Employment Acts to stimulate tourism on the North-East Coast? I shall have a great deal to say on the problem of shipping when the relevant Bill is introduced. Is my hon. Friend aware that we want a more active policy for our area, as we have a great deal to offer on the North-East Coast and we should like to have the opportunity of offering it?

Mr. Grant

There is nothing to stop the North-East Coast offering it now. The Local Employment Acts are concerned with employment and not directly with tourism. We have had an exchange of correspondence on this and exchanges in the House. I repeat the offer that I have made to my hon. Friend to discuss the problems.