HC Deb 27 June 1972 vol 839 cc1175-6
11. Mr. John Smith

asked the Chancellor of the Exchequer if he will make a further statement on the future of the regional employment premium.

Mr. Higgins

I would refer the hon. Member to my hon. Friend the Minister of State's reply to the hon. Member for Dunbartonshire, West (Mr. Ian Campbell) on this subject on 20th June.—[Vol. 839, c. 59.]

Mr. Smith

Is the hon. Gentleman not aware that total confusion reigns as to what is to be the future of the regional employment premium? In 1970, in his Budget Statement, the Chancellor said that it was to disappear in 1974. That was revised in 1972 to the statement that it would be phased out after 1974. Bearing in mind the fact that the REP is worth £100 million a year to regional development and also the need for some constancy in regional development intentions, is it not high time that the Government made up their minds what will happen in 1974, so that industry in the regions knows where it stands?

Mr. Higgins

I do not agree that there is confusion over this matter or that the timing of the phasing out is having an effect on investment. The Government's view remains the same as that in my right hon. Friend's statement in his Budget speech.