Employment Subsidy (Hansard, 10 July 1972)

§ 1. Mr. McBride
asked the Secretary of State for Wales if he will institute a special study of the forms of employment subsidy which would be suited to Welsh industry.

§ The Secretary of State for Wales (Mr. Peter Thomas)
I would refer the hon. Member to the reply I gave the hon. Member for Cardigan (Mr. Elystan Morgan) on 13th June.

§ Mr. McBride
That is a disappointing reply. Is the right hon. and learned Gentleman aware that there must be an alternative when regional employment premium, which helps to promote employment in Wales, is phased out? There will be a distribution in 1972–73of £12.9 million and in the following year of £13.1 million. Is the right hon. and learned Gentleman aware that the Industry Bill gives no definite figures in this regard? In view of the unemployment figures for Wales, the right hon. and learned Gentleman of all people must know that a sensible alternative policy to subsidise employment in Wales is called for.

§ Mr. Thomas
My right hon. Friend the Chancellor of the Exchequer said in his Budget statement that the regional employment premium would be phased out over a period from September, 1974. He also said that the rate and method of phasing out would be announced in the light of circumstances at the time, and after consultation with industry. The matter must be considered in the context of the whole package of regional incen- 1152 tives which we are proposing, which has been warmly welcomed by the Welsh Council.

§ Mr. Elystan Morgan
Will the right hon. and learned Gentleman give a categorical assurance that every one of the forms of regional assistance administered by the Government, and those administered by the previous Government in fuller form, will be available to Wales without any inhibition in the event of our entry into the EEC?

§ Mr. Thomas
The only assurance I can give the hon. Gentleman is the assurance given by my right hon. Friend the Chancellor in his Budget statement, in particular when he said that the measures which we propose, and which, I repeat, were warmly welcomed by the Welsh Council in its report last week, are proposals which we intend should continue for the next eight years.