Temporary Employment Subsidy (Hansard, 28 February 1978)

§ 4. Mr. Freud
asked the Secretary of State for Employment whether he is satisfied that 10 remains a realistic minimum number for eligibility for temporary employment subsidy.

§ The Under-Secretary of State for Employment (Mr. John Grant)
Yes, Sir. Although we appreciate the difficulty that this causes, to reduce the threshold further would need substantial increases in staffing if long, damaging delays in the processing of other claims were to be avoided.

§ Mr. Freud
Will the Minister reconsider that, because it is very unrealistic today to have to have 10 unemployed people before one can receive a TES? Secondly, as industry in the same area seems to suffer the same sort of fate at the same time, will the hon. Gentleman consider accepting TES applications from a number of firms which form themselves into a co-operative?

§ Mr. Grant
We feel that any further reduction in the threshold would bring in a large number of applications for what would be a relatively small number of jobs saved, and would cause considerable administrative problems and add to the backlog with which we are now dealing. However, we shall look at the hon. Gentleman's latter point.

§ Mr. Noble
Does my hon. Friend agree that the threshold level could be academic for many workers in the clothing, textiles and footwear industries if the European Community gets its way? Will he advise my right hon. Friend the Secretary of State to make clear to the bureaucrats in Brussels that we shall not end the TES until there has been a thoroughgoing review of the multiplicity of employment subsidy schemes in all the other European Community countries?

§ Mr. Grant
My right hon. Friend has made the Government's views very clear in Brussels, as in this House. At this stage I cannot add to what he has already told the House.

§ Mr. Wigley
Is the hon. Gentleman aware that in areas of high seasonal unemployment, areas of tourism, and so on, the scheme has not worked all that effectively so far? There are examples where it was applied initially and then withheld for a subsequent season. Will the hon. Gentleman reconsider the matter so that next season there will be an opportunity for concerns in tourist areas to maintain a nucleus of skilled people through to the next season and improve their performance?

§ Mr. Grant
I understand the difficulty that the hon. Gentleman has raised, but it is a temporary employment subsidy scheme and has a limited duration, although there is now a supplementary addition to the scheme.