HC Deb 28 April 1978 vol 948 cc701-2W
Mr. Richard Page

asked the Secretary of State for Employment (1) what proportion of jobs in firms receiving temporary employment subsidy is lost in competitive firms which are not similarly supported;

(2) what proportion of jobs saved by temporary employment subsidy is lost by the displacement effect.

Mr. Golding

I regret that I am unable to supply this information. It is not possible to estimate with any confidence the extent and timing of job displacement occurring as a result of TES.

Mr. Richard Page

asked the Secretary of State for Employment what proportion of those who would have been unemployed but for temporary employment subsidy is assumed, in calculating the total cost to the Revenue of such unemployment (a) to have registered as unemployed, (b) to have been entitled to unemployment benefit, and, on average, how long and at what average weekly cost and (c) to have been entitled to supplementary benefit and, on average, how long and, on average, at what weekly cost.

Mr. Golding

We calculate that TES has neglible net costs, and for this purpose we assume that at least 70 per cent. of those whose jobs are preserved would otherwise have signed the register and claimed benefit. Given the wide variety of individual circumstances, broad estimates have to be made of the savings to the Exchequer when a worker is maintained in employment. Total savings averaging £40 a week for each job preserved are assumed for the duration of the subsidy payment, approximately half of which represents savings in unemployment and supplementary benefits in the case of those who would have signed the register; the other half is made up of increased tax revenue—largely direct taxes—and national insurance contributions. These figures reflect the fact that 42 per cent. of those covered by TES are women.

Mr. Richard Page

asked the Secretary of State for Employment how many jobs he estimates are lost in addition to the displacement effect as a result of the public expenditure resulting from the net cost of temporary employment subsidy.

Mr. Golding

The net cost of the TES is negligible and the number of jobs lost through this money not being available for spending elsewhere is, therefore, also negligible.