Regional Incentives (Hansard, 8 May 1972)

§ 2. Mr. Douglas
asked the Secretary of State for Trade and Industry if he will make a statement regarding the proposed duration of the present package of regional incentives offered to industry.

§ The Under-Secretary of State for Trade and Industry (Mr. Anthony Grant)
As announced in the White Paper on Industrial and Regional Development, Cmnd. 4942, the Government intend to maintain the new system at least until the transitional period of entry to Europe is over, that is to 1st January, 1978.

§ Mr. Douglas
Does the Under-Secretary of State concede, having learned lessons from two rapid changes in regional policy, that the House should consider the promotion of a Select Committee on regional policy? Will the hon. Gentleman consult his right hon. and hon. Friends with that end in view?

§ Mr. Grant
I should think that is not necessarily the general view, in view of the recent announcement and the fact that a Bill will soon be brought before the House to implement it.

§ Mr. Bruce-Gardyne
Will my hon. Friend bear in mind that a combination of bribes for the establishment of branch factories and the provision of taxpayers' subsidies for operations not obviously enjoying the prospect of commercial viability was not very successful when tried before? Therefore, will he not rule out the posibility of reviewing the operation of this package in less than six years?

§ Mr. Grant
To give certainty to industry, we stand by the announcement made by my right hon. Friend the Chancellor of the Exchequer. In asking the first part of his supplementary question my hon. Friend probably overlooked the fact that the incentives we offer are three times more beneficial to profitable firms than to non-profitable firms.

§ Mr. Dell
Although assurances have been given about the duration of the new system of regional incentives, no assurances have been given, as far as I am aware, about the level of grants. As it is six weeks since the Chancellor made his Budget statement, may I ask what assurances have been given in that respect?

§ Mr. Grant
I have said that we should maintain the system. The level of assistance is now very generous and I cannot foresee that any substantial increase would be justified.