HC Deb 11 December 1968 vol 775 cc402-3
14. Mr. Patrick Jenkin

asked the President of the Board of Trade what representations he has had about his refusal to pay investment grants to firms engaged in the business of recovering and processing non-ferrous scrap metals; and what replies he has sent.

Mr. Dell

I have nothing to add to the answer I gave on 6th November to the hon. Member for Leicester, South-west (Mr. Tom Boardman).—[Vol. 772, c. 87-8.]

Mr. Jenkin

Is it not absurd that an industry which invests millions of pounds in machines such as shredders, crushers, balers and saws is not entitled to investment grants? Does not the hon. Gentleman recognise that there is a substantial change in the character of the goods which pass through the scrap processors' works, and that this should entitle them to investment grants?

Mr. Dell

I entirely appreciate all the consideration which the hon. Gentleman has mentioned, but I do not think that any of the types of equipment to which he refers involve what is required under the Industrial Development Act, namely, the making of an article, and it is to this that the Act requires us to have regard. There is some encouragement to the industry by way of initial allowances on plant and machinery at the enhanced rate of 30 per cent.

Mr. Crawshaw

My hon. Friend's answer will be received with disappointment particularly in the light of his emphasis on rising imports. Will he assure the House that there is a section in his Department which not only views with alarm the rising level of imports but makes recommendations on how our own industry could save these imports coming in?

Mr. Dell

I am aware that my answer will be received with disappointment. We have had continuing discussions with the industry concerned. Import saving is of the highest importance, but the Industrial Development Act does not assist all industries engaged in import saving or assisting the balance of payments. The Act concentrates the grant system of assistance on manufacturing industry, that is, on those industries which make a major contribution to exports.