§ 18. Mr. Ridleyasked the President of the Board of Trade how he intends to prevent contractors' plant, purchased for use in a development area with a 45 per cent. investment grant, being subsequently used outside a development area.
§ Mr. JayThe recipient of the grant has a legal obligation to notify the Board of Trade if the plant is moved outside the development area within three years and in that case to repay an appropriate proportion of the grant. Inspectors from investment grant offices will visit premises to ensure that conditions of grant are being observed.
§ Mr. RidleyDoes not that make absolute nonsense of the right hon. Gentleman's investment grant policy? How can he possibly know whether a particular piece of equipment is on one contractor's site or on another? Is he aware that his whole policy of regional discrimination will fall down on demarcation troubles of that sort if he is not more careful?
§ Mr. JayIf that is so, it makes absolute nonsense of our Income Tax law for the past 50 years or more, because under the old capital allowances one had to have similar provisions for items of plant if they were sold.