HC Deb 19 May 1966 vol 728 c1526
13. Mr. G. Campbell

asked the President of the Board of Trade whether he will alter the proposed system of investment incentives to enable buildings used for research, such as high altitude test chambers, to qualify for investment grants.

Mr. Jay

Buildings will not be eligible for grants under Part I of the Industrial Development Bill, but expenditure on buildings used for scientific research will continue to receive the special 100 per cent. tax write-off allowance. In addition, buildings in Development Areas will be eligible for grants at 25 per cent. or 35 per cent. where employment is provided. I am advised that high altitude test chambers normally include some element which would be regarded as plant or machinery, and this would qualify for investment grant.

Mr. Campbell

Should not this kind of investment receive high priority in any incentive system? Will the right hon. Gentleman consider making all parts of such investment in research eligible?

Mr. Jay

It already receives 100 per cent. write-off and I think that that is very favourable treatment.