HC Deb 25 March 1974 vol 871 cc23-4
23. Mr. Richard Wainwright

asked the Secretary of State for Industry whether he will alter the policy on grants for industrial development so as fully to include new businesses which recycle reclaimed materials instead of using virgin raw material paid for in foreign currency.

Mr. Mackenzie

Regional development grants are available in assisted areas where premises are used wholly or mainly for qualifying activities. These activities include the processing of scrap and waste materials. There are certainly borderline cases both in fact and in law and if the hon. Member has a particular case in mind I shall be very ready to consider it.

Mr. Richard Wainwright

Is the hon. Gentleman aware that, under the policy of the previous and now vanished administration, the use or otherwise of virgin material was perversely used as a test of whether the process was one of manufacturing or repairing?

Mr. Mackenzie

I did not catch the last part of the hon. Gentleman's supplementary question, but I am prepared to agree with him that whatever the previous Government did was probably wrong. As for his comment about reducing expenditure on imported material, I take his point. But that is not actually a function of regional incentives.

Mr. Dalyell

Whatever the previous Government may have done, will my hon. Friend look at the official amendments of the previous Opposition during the progress of the Finance Bill, aimed at helping those firms that were prepared to undertake recycling? In particular, will he consider the problem of industries in our own area that suffer from shortage of packaging, such as the Scotch whisky industry?

Mr. Mackenzie

Yes, I will.

Mr. Edwin Wainwright

Will my hon. Friend take a look at the export of waste paper? Is he not aware that we are short of paper in this country, yet we are exporting it at a price as high as £40 per ton, whereas the price here is about £18 a ton?

Mr. Mackenzie

My hon. Friend's supplementary questions do not fall within the scope of the Question, but I appreciate his comments and agree with them.

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