HC Deb 10 February 1966 vol 724 cc604-5
37. Mr. Bruce-Gardyne

asked the President of the Board of Trade what estimate he has made of the value of the new system of investment allowances to industry in Scotland.

Mr. Jay

No precise estimate can be made, since the value depends on the level of investment in industry in Scotland. On the basis of the current level of investment, the total value of the investment grants which my Department will be giving to industry in Scotland is likely to be of the order of £25 million to £30 million in a full year. In addition substantial assistance is likely to be given in the form of building grants, loans and Board of Trade factories.

Mr. Bruce-Gardyne

Is the right hon. Gentleman aware that most businessmen in Scotland found the depreciation allowance in development districts a most attractive incentive? Why did he cut it out?

Mr. Jay

They will now get a 40 per cent. investment cash grant and the appropriate building grants in addition. I think those will be an even greater incentive.

Mr. Barber

Will the right hon. Gentleman confirm that the value of the new scheme of investment incentives will be less than the system operated by the last Conservative Government?

Mr. Jay

That will not be so, as the right hon. Gentleman will learn when we debate this in more detail.