Skip to main content

Regional Employment Premium

Volume 932: debated on Monday 16 May 1977

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Secretary of State for Scotland if he will make a statement on the effect on Scotland of the abolition of regional employment premium; and what proposals he has for providing an alternative system to protect manufacturing industry.

The withdrawal of REP was part of a package of measures designed to allocate available resources more effectively. The net effect of the package in Scotland was expected to be to reduce unemployment below what it would otherwise have been in the current year. The new measures announced included: an additional £80 million in both 1977–78 and 1978–79 for expenditure on selective assistance to industry; £100 million for the new selective investment scheme; and additional spending of £120 million during 1977–78 and 1978–79 on measures to reduce unemployment. Since then my right hon. Friends the Chancellor of the Exchequer and the Secretary of State for Employment have announced measures including the extension of the job creation programme and the temporary employment subsidy and the introduction of a new employment subsidy for small manufacturing firms in special development areas. Manufacturing industry, of course, continues to benefit from the full range of regional incentives under the Industry Act 1972.