HC Deb 25 June 1976 vol 913 cc479-84W
16. Mr. David Watkins

asked the Secretary of State for Employment how many projects under the job creation programme were approved in the latest month for which figures are available; how many jobs are created by those projects; and at what cost.

Mr. Booth

I am informed by the Manpower Services Commission that in the four weeks up to 11th June 450 projects were approved, providing 5,124 jobs with a total grant of £7.14 million.

20. Mr. Scott

asked the Secretary of State for Employment whether he will make a statement on the future of the job creation programme.

Mr. Golding

The job creation programme has recently been extended to 30th September 1977. It is expected that the number of people employed on projects will reach a maximum in winter 1976 to spring 1977 and will gradually reduce during the summer months. Of the £75 million available, £32 million has been allocated. A promotional programme throughout the country has recently ended. It is too early to evaluate the effects of this campaign on the rate of applications, but during the last week for which records are available, applications totalling nearly £3 million were received.

Mr. Scott

asked the Secretary of State for Employment what arrangements are being made to ensure that the job creation programme will continue beyond 31st March 1977.

Mr. Golding

The job creation programme has recently been extended to 30th September 1977. It is expected that the number of people employed on projects will reach a maximum in the winter and spring of 1976–77 and reduce gradually through the summer months.

Mr. Scott

asked the Secretary of State for Employment how many job creation projects have been sponsored by nationalised industries.

Mr. Golding

I am informed by the Manpower Services Commission that up to 11th June three projects sponsored by nationalised industries had been approved.

Mr. Scott

asked the Secretary of State for Employment what information he has about the number of job creation projects which have been sponsored by private industry.

Mr. Golding

I am informed by the Manpower Services Commission that up to 11th June 38 projects sponsored by private industries had been approved.

Mr. Scott

asked the Secretary of State for Employment whether he has any plans to offer incentives to industry to act as sponsors for job creation projects.

Mr. Golding

The Manpower Services Commission welcomes applications for job creation projects from any organised group in the community, including industrial firms. The commission pays the wage costs of job creation projects, and in addition to the grant can include an amount of up to 10 per cent. of labour costs as a contribution towards materials, equipment and administration. One of the guidelines of the programme is that projects should not result in private gain for the sponsor.

Mr. Scott

asked the Secretary of State for Employment how many local authorities have informed the Manpower Services Commission that they have set aside special sums of money to promote job creation.

Mr. Golding

Detailed information is not available, but it is believed that a number of local authorities have set aside in advance funds to meet costs of projects not covered by the Manpower Services Commission's grant.

Mr. Scott

asked the Secretary of State for Employment what steps are being taken by his Department or the Manpower Services Commission to identify permanent ventures from present job creation projects; and what encouragement is offered to sponsors to develop such projects.

Mr. Golding

Although the job creation programme is primarily intended to provide temporary employment, high priority is given to projects which could provide permanent jobs. The Manpower Services Commission has set aside a small fund to "pump-prime" ventures which may become self-financing and thereby a source of permanent jobs. Several such projects have already been approved.

Mr. Scott

asked the Secretary of State for Employment whether he will issue instructions to the Manpower Services Commission that all area action committees under the job creation programme should include representatives of all potential sponsoring groups including voluntary organisations.

Mr. Golding

Some committees have a representative of local voluntary organisations and I shall ask the Manpower Services Commission to consider appointing such representatives to all committees.

Mr. Scott

asked the Secretary of State for Employment whether he will list the area action committees which have been established under the job creation programme.

Mr. Golding

I am informed by the Manpower Services Commission that there are action committees covering the following areas: Scotland, East and North; Scotland, West; Northern England; Merseyside; North-West England; Yorks and Humberside; Midlands; Wales; South-West England; London and South-East England.

Mr. Scott

asked the Secretary of State for Employment how many projects are under way and at what cost under the job creation programme in the London area.

Mr. Golding

I am informed by the Manpower Services Commission that up to 11th June 25 projects have been approved in London providing up to 478 jobs at a cost of £608,000. Of these, 12 projects had started creating up to 267 jobs with total grants of £420,000.

Mr. Scott

asked the Secretary of State for Employment how much has been spent on projects in the London area under the job creation programme.

Mr. Golding

I am informed by the Manpower Services Commission that, up to 11th June, of the 25 projects approved in the London area, 12 had started providing up to 267 jobs with total grants of £421,000. The 25 projects will provide up to 478 jobs with grants of £608,000.

Mr. Scott

asked the Secretary of State for Employment what allocation has been made for the London area under the job creation programme.

Mr. Golding

I am informed by the Manpower Services Commission that £3 million has been provisionally allocated for London and South-East England.

Mr. Scott

asked the Secretary of State for Employment which regions of the country have already overspent their allocation of job creation money from the Manpower Services Commission.

Mr. Golding

I am informed by the Manpower Services Commission that when the job creation programme was launched most of the £30 million then available was allocated to the development areas, and their initial allocations have now been used. Extra funds were allocated to the job creation programme in December 1975 and February 1976, and were used to increase allocation to the development areas, and to expand activities outside these areas. None of the six original areas has so far exceeded its revised allocation, but one of the new areas—Yorkshire and Humberside—has already approved grants in excess of its allocation.

Mr. Scott

asked the Secretary of State for Employment at what rate the £75 million job creation programme is actually being spent on approved projects.

Mr. Golding

I am informed by the Manpower Services Commission that it is difficult to estimate how much has so far been spent by sponsors of projects under the job creation programme, since local authorities are paid quarterly in arrears and other sponsors are paid monthly in arrears. Up to 31st May payments totalling £2.3 million had been made on claims submitted by sponsors.

Mr. Scott

asked the Secretary of State for Employment at what rate the £75 million under the job creation programme is being allocated by the Manpower Services Commission to prospective sponsors.

Mr. John Golding

I am informed by the Manpower Services Commission that, up to 11th June 1976, eight months after the job creation programme was launched, grants totalling £32.23 million had been approved. In the four weeks up to 11th June the total grant approved was £7.14 million.

Mr. Scott

asked the Secretary of State for Employment what review is being conducted by his Department of the record and role of the Manpower Services Commission in job creation and whether he will make a statement about the programme's future development.

Mr. Golding

My Department is in close touch with the Manpower Services Commission, and the progress of the job creation programme is constantly being noted. The job creation programme has recently been extended to 30th September 1977. It is expected that the numbers of people employed will reach a maximum in winter 1976 to spring 1977 and will gradually reduce during the summer months.

Mr. Scott

asked the Secretary of State for Employment on how many projects under the job creation programme the Manpower Services Commission has had to seek Treasury approval for overspending on administrative and other expenses for projects.

Mr. Golding

I am informed by the Manpower Services Commission that there has so far been no occasion to do so.