§ Mr. Dewarasked the President of the Board of Trade if he will take action to direct Local Employment Acts' assistance towards activities likely to contribute most to the economic strength of the development areas, as proposed by Her Majesty's Government on 16th January.
§ Mr. CroslandI have decided that, in view of the need to direct Government assistance towards activities which would contribute most to the economic strength of the development areas, it is desirable to concentrate future assistance under the Local Employment Acts mainly on manufacturing industry. It is our experience that this sector makes the most effective contribution to employment in the development areas.
The service industries (Orders XIX-XXIV of the Standard Industrial Classification) will therefore no longer be eligible for assistance except in respect of projects which bring into the development areas substantial additional employment. Service projects providing less than 50 additional jobs will not be eligible. This change in policy will not, however, affect applications which are already under consideration and applications will continue to be accepted for consideration 270W until 31st August in respect of any service project where building work will have started on or before that date.