§ Mr. Kenneth Clarkeasked the Secretary of State for Employment what representations the Government have received from the European Commission about the future of the temporary employment subsidy scheme; what replies the Government propose to give; 280W and whether he will make a statement on the compatibility of the scheme with European policy on competition and industrial subsidies.
§ Mr. GoldingI confirm that the Government have received a letter from the EEC Commission under Section 93(1) of the Treaty of Rome drawing attention to the need to give advance notification of any proposal to continue the TES scheme beyond 31st March 1978.
The Commission has expressed doubts about the compatibility of the scheme in its present form with European policy on competition and has suggested various changes they would like to see in any future scheme. The Commission's letter is being taken into account in the Government's current review of the future of TES.