HC Deb 14 June 1967 vol 748 cc533-4
9. Mr. Alison

asked the President of the Board of Trade why investment grants under the Industrial Development Act are payable for the installation of electrical generating equipment.

The Minister of State, Board of Trade (Mr. George Darling)

Generating equipment installed by a firm to provide power solely for its own use in carrying on a qualifying industrial process such as manufacturing qualifies for grant in the same way as other ancillary plant or machinery. Where the equipment is installed for the purpose of supplying power to others, grants will be given only in exceptional cases after consideration of the implications for the public generating authorities.

Mr. Alison

As the Government have recently had to announce a huge increase in the price of publicly generated electricity because of a fall in the volume of sales, is not the giving of encouragement to private industry to generate electricity privately an example of administrative schizophrenia?

Mr. Darling

There are two answers to that. The point about working in conjunction with the public generating authorities goes back to legislation passed in 1909. On the other point, I am not sure that the increase in electricity charges is due solely, or even largely, to a falling off in demand.

22. Mr. G. Campbell

asked the President of the Board of Trade whether any investment grants have been authorised for transport vehicles or office equipment, other than computers, whether used by manufacturing or other industry.

Mr. Darling

No grants have been authorised in respect of vehicles other than those specifically provided for in the Industrial Development Act or for equipment other than computers which is to be used for general office purposes.

Mr. Campbell

Is the Minister aware that the withdrawal of investment allowances and the ineligibility for the grants of transport vehicles are especially painful for areas like the north of Scotland, where transport is such an important factor in almost all industry and commerce?

Mr. Darling

What the hon. Gentleman is asking for is some kind of regional assistance. This is a matter that might well be considered, but it does not come within the scope of the Industrial Development Act.

41. Mr. J. H. Osborn

asked the President of the Board of Trade if he will estimate the cost of making an analysis of, and publishing, the value of capital projects for which investment grants have not been allowed under the discretionary clauses of the Industrial Development Act, the cost of publishing the number of applications that have been refused, and the reasons for such a refusal.

Mr. Darling

No, Sir. I hope to be able to provide in July statistics for most of the claims received in the first quarter. These will show by broad categories the value of the expenditure on which grant was claimed and the amount which qualified for grant, but to extract from thousands of applications details of individual items disallowed and the reasons in each case for refusal would be a formidable and costly operation of limited use.

Mr. Osborn

Is there not considerable confusion as a result of replacing allowances by discretionary grants? Will the Minister publish the criteria for acceptance and rejection, as was promised during the passage of the legislation? Will the Minister clear up those areas where there is confusion—for instance, what is and what is not a computer?

Mr. Darling

There is no confusion about this. In any case of confusion we will be willing to give all the help we possibly can to clear it up. The information that the hon. Member is asking for has been widely and freely provided to industry and, so far as we know, there is no industrial enterprise that has not got the information.