HC Deb 22 October 1973 vol 861 cc675-6
11. Mr. John Smith

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

Mr. Chataway

There were discussions with the CBI and TUC in the summer, and these will be taken into account in the decision, which will be reached as soon as possible.

Mr. Smith

Is the Minister aware that it is now many months since the Government threatened to abolish the regional employment premium, but since then there has been almost unanimous opinion from the CBI, the TUC, individual firms and workers, local authorities and regional development corporations all over the country that the Government should retain the regional employment premium and, indeed, increase it, as one of our most effective regional development policy aids? Is it not time that the Government came to a sensible decision about this and decided to keep the regional employment premium so that we have a good regional development policy?

Mr. Chataway

The position that we have adopted, as the hon. Gentleman knows, is the same as that adopted by the right hon. Member for Cardiff, South-East (Mr. Callaghan)—[HON. MEMBERS: "No."] On 5th June 1967 the right hon. Gentleman stated—I refer hon. Members to c. 750 of HANSARD for that day—that the regional employment premium should exist for seven years and thereafter not be abolished but be phased out.

Mr. Ewing

What was the Minister's reply to the CBI submissions that the regional employment premium should be continued for a further four years and that if it were phased out this would lead to an additional 20,000 to 50,000 unemployed?

Mr. Chataway

The views put to us by the CBI and the TUC are being considered.

Dame Irene Ward

In view of what my right hon. Friend has said, may we have the evidence that has been given by the CBI and the TUC to the Prime Minister? That would be a great help. It is rather odd that when the TUC and the CBI agree on something, the Government do not agree. I should have thought that the Government would have been jolly pleased to do so.

Mr. Chataway

I am afraid that I cannot give my hon. Friend an undertaking that whenever the CBI and the TUC agree the Government will do so also.