§ 6.36 p.m.
§ Lord JACQUES rose to move, That the draft Regional Employment Premium (Continuation of Payment) (Winsford) (Amendment) Order 1976, laid before the House on 29th June, be approved. The noble Lord said: My Lords, I beg to move the Motion standing in my name on the Order Paper. This draft order amends a similar order which I introduced to the House in July 1975.
§ Winsford was given a development area incentive from 1966, contingent on its taking two-thirds of its enlarged population from Merseyside. From 1967 the Regional Employment Premium (which was generally to last until 1974) was paid. But in 1972 Winsford was found not to be taking enough people from Merseyside. 83 It was therefore downgraded to an intermediate area which does not qualify for a Regional Employment Premium. Firms already established there, expecting to get these benefits until 1974, were allowed by order to continue to receive them. The Government decided to maintain the original employment premium while considering other possibilities and doubled the rates in August 1974. The Regional Employment Premium remains under review and is being considered in the context of the Government's public expenditure review. We think it right meanwhile to renew the power to make these payments to Winsford for a further period of 12 months but without commitment to their actual duration. I beg to move.
§ Moved, That the draft Regional Employment Premium (Continuation of Payment) (Winsford) (Amendment) Order 1976, laid before the House on 29th June, be approved.—(Lord Jacques.)
§ Lord LYELLMy Lords, we are all very grateful for the very detailed way in which the noble Lord, Lord Jacques, set out this particular order. We on these Benches are particularly glad that the Government are continuing to pay the Regional Employment Premium on Wins-ford which, as the noble Lord said, envisaged taking two-thirds of the increased population from Merseyside. Things did not work out in this way. Nevertheless, firms have gone to Winsford in the expectation that they will receive the Regional Employment Premium and they will continue to receive it. All of us can be happy that Governments of all shades have kept their promises.
There is one point on which the noble Lord may be able to help me, even at this stage. In our dialogue at this time last year the noble Lord confirmed that the cost was approximately £800,000 per annum. Is he able to confirm tonight that it is in that region or not too much over or under? It is a minor point, and I should like to conclude by saying that we are grateful that this order is being continued.
§ Lord JACQUESMy Lords, the present estimate of the cost is £680,000 per annum.