HC Deb 18 December 1984 vol 70 cc148-9
9. Mr. Heathcoat-Amory

asked the Secretary of State for Employment what progress he has made in encouraging job sharing and job splitting.

Mr. Alan Clark

My right hon. Friend announced in the debate on the Address that he would be improving two experimental Government initiatives, namely, the job splitting scheme and the part-time job release scheme, designed to encourage changes in working patterns and to help in reducing the problem of unemployment.

Mr. Heathcoat-Amory

Has my hon. Friend considered using reductions in national insurance contributions to encourage job sharing? Does he agree that in larger businesses that would permit more people to be employed, and that the net cost to the Government would be small?

Mr. Clark

As my hon. Friend will be aware, the starting point for national insurance contributions is £34 a week, which means that such contributions are not required for many part-time jobs. We are worried about the legislative burden, including national insurance contributions, on employers which might hinder the creation of new jobs. I shall ensure that my hon. Friend's comments are borne in mind by my right hon. Friend the Chancellor of the Exchequer.

Mr. Golding

Is the Minister aware that only 990 places have been created by the job splitting scheme? Is he further aware that in March 1983 the Government justified spending on 338,000 places by saying that there had been 9,000 inquiries? What has happened to those inquiries?

Mr. Clark

I believe that the hon. Gentleman meant £338,000. He said places.

Mr. Golding

No.

Mr. Clark

I admit that the result of the job splitting scheme has been disappointing, which is why my right hon. Friend announced improvements to it. Naturally, it was appropriate to have an advertising campaign of a limited nature in the first instance, to draw the attention to the scheme of those who might be interested in it.

Mr. Rowe

Is it not an undesirable paradox that at a time when many people are unemployed many of the most prosperous people in society appear to be working longer hours than ever before? Will my hon. Friend consider having discussions with professional bodies and others to see what progress can be made in sharing some of the work among people whose take-home pay is such that it would be easier for them to do so than it would be for people lower down the pay scale?

Mr. Clark

My hon. Friend's suggestion is interesting. Essentially, wage rates and hours of work should be negotiated between employer and employee.

Mr. Evans

Will the Minister concede that, despite the thousands of pounds spent on advertising the job-splitting scheme, it is a dismal failure? Why does he not spend the money more wisely and extend the provisions of the job release scheme to 62-year-olds, among whom there is an obvious demand for this popular scheme?

Mr. Clark

I note the hon. Gentleman's characteristic lack of generosity, which he always displays in relation to this scheme, and I applaud his concern for the public borrowing requirement.