§ Mr. Russell Johnston
asked the Secretary of State for Scotland what proposals he has to offset the increase in house costs resultant upon the application of the Selective Employment Tax.
§ Mr. Ross
The tax should provide a further stimulus to greater efficiency and the more economical use of labour in the construction industry which is to be given the benefit of investment grants. The cost of materials and components for house-building should be reduced by the payment of premiums to employers engaged in manufacturing them, and by the removal of the import surcharge. In the public sector the new subsidies will be related to actual costs of construction.