HC Deb 16 November 1976 vol 919 cc1097-8
13. Mr. Madden

asked the Secretary of State for Employment how many firms are currently benefiting from the temporary employment subsidy; how many workers are covered; and if there is any intention to extend the scheme when it expires at the end of the year.

Mr. Golding

As at 29th October 1976, 1,845 applications had been approved covering 135,332 workers and 385 applications affecting 32,222 workers were under consideration.

The Government are now considering the need to extend the scheme in one form or another beyond 31st December.

Mr. Madden

Will my hon. Friend give two assurances? First, will he tell us that the temporary employment subsidy will be given only to companies with prospects of long-term viability? Secondly, will he say that where firms which receive the temporary employment subsidy make workers redundant his Department will make a full inquiry into the circumstances?

Mr. Golding

The present rules require us to be certain that there is long-term viability in a firm. Secondly, if circumstances were to change, it is possible that redundancies would be declared which could not have been predicted at the time initial inquiries were made.

Mr. Tebbit

Is the Minister satisfied that this system, which ensures that factories are over-manned, is the best way to form a springboard for the great take-off of industrial efficiency about which the Prime Minister so often talks?

Mr. Golding

We do not believe that the temporary employment subsidy leads to over-manning on any scale at all. We believe that it is a sensible scheme in that temporary help is given to firms to avoid workers being declared redundant and thereby becoming an additional burden on social security funds.

Mr. Pardoe

Does the Minister recognise that 31st December is not very far away and that there will be great uncertainty unless and until the Government come to a decision? Will he therefore make up his mind very quickly about this matter? Will he recognise also that the dropping of this subsidy will cause greatly increased unemployment in Cornwall and that by far the best replacement would be a massive programme of labour-intensive public works in development areas?

Mr. Golding

We shall bear both those points in mind. We realise that an urgent decision is necessary, and we appreciate that if the subsidy were to end there would be other costs involved.