HC Deb 11 June 1973 vol 857 cc983-4
19. Mr. Horam

asked the Secretary of State for Trade and Industry if he will make a further statement on the progress of his talks with industry and the trade unions about the regional employment premium.

25. Mr. Radice

asked the Secretary of State for Trade and Industry if he will make a further statement on his discussions with the CBI and the TUC on the regional employment premium.

Mr. Anthony Grant

Consultations with both sides of industry have begun. A meeting with the TUC was held last week.

Mr. Horam

Are these talks exclusively about the phasing out of REP or do they cover the whole range of labour subsidies or labour taxes in the assisted areas?

Mr. Grant

There is an opportunity for anyone to express views on REP in the discussions about phasing out.

Mr. Radice

In view of the support of the CBI and the TUC for the regional employment premium, will not the Government have the courage or the good sense to change their mind or at least consider the case for a payroll subsidy for development areas? Will the Minister make a statement?

Mr. Grant

The Government will have the good sense to wait until the consultations have taken place and to take note of all the views expressed. We are meeting the CBI next week.

Mr. R. W. Elliott

Will my hon. Friend also assure the House that the Government will have the good sense to recognise that the incidence of REP might mean the continuance of jobs, but in some cases, according to recent studies such as the Cambridge study, at fantastically high cost?

Mr. Grant

I assure my hon. Friend that these factors will be taken into consideration by the Government.

Mr. John Smith

Why are only the TUC and the CBI involved in these discussions? Is it not a matter of tremendous importance to all the development areas? Will the Minister consult representatives from the development areas before taking away a subsidy which, according to the Cambridge study, provides between 20,000 and 50,000 extra jobs a year?

Mr. Grant

That is a matter which the hon. Gentleman should put to my right hon. Friend the Chancellor of the Exchequer.