Financial Resolutions, 1978: Financial Statement, Budget, 1978. - Aid for labour intensive industries
The Government are concerned at the difficulties being experienced at present by certain labour-intensive sectors of industry owing to the increased competition arising from the existence of special measures adopted by the British Government to maintain employment. The sectors particularly affected are the clothing, foot-wear and some areas of the textiles industry on which the British measures have a very serious impact.
The Government decision in principle, which has already been announced, to introduce pay-related social insurance contributions in 1979 should be of assistance to labour-intensive firms, large and small. So also will be the tax concessions which I have announced. The Government feel that more immediate aid may be required however and they have decided therefore that firms engaged in the particular sectors of industry which I have mentioned should be assisted by a payment of £5 per week in respect of each worker on their payroll. This measure is intended to be of a temporary nature. It will be reviewed when the fully pay-related social insurance contribution system comes into operation. In any event, it will end as soon as the British scheme is terminated. The scheme will come into operation from the beginning of April and details will be announced as soon as possible. I am allocating a sum of £5 million for this purpose in the current financial year.