HC Deb 01 March 1976 vol 906 cc903-5
11. Mr. Gow

asked the Secretary of State for Industry whether he is satisfied that the document "Criteria for Assistance to Industry" published by his Department in December 1975 is being observed by his Department.

Mr. Varley

Yes, Sir.

Mr. Gow

Does the right hon. Gentleman recall the commitment in paragraph 1(5) of his Department's document that it will introduce measures to curb monopolistic practices in industry? What measures he has in mind to check monopolies in the Post Office and in the bus industry?

Mr. Varley

That does not arise from the hon. Gentleman's Question. However, the criteria have been extensively discussed with both sides of industry within the National Economic Development Council and they have been considered by the Industrial Development Advisory Board. There are risks, which are fairly set out in the document that we have made available to Parliament. I hope that as a result of that document the practices will be better understood.

Mr. Heseltine

As the document said that the most important objective was a return on the assets helped by the Government, can the right hon. Gentleman tell us the budgeted return on those assets in the current year?

Mr. Varley

I cannot do that without notice. The hon. Gentleman chides the Government for providing the information. Under the Industry Act 1972, introduced by his Government, no criteria for assistance were published or made available to the House. The Minister in charge rejected an amendment that would have laid on the Government a duty to provide some criteria. Therefore, the hon. Gentleman should be more understanding about these matters. There are risks. Some firms will achieve viability very quickly after receiving Government assistance on a once-and-for-all basis. Others may take longer. It depends on the nature of the project. The hon. Gentleman knows that full well.

12. Mr. Peter Morrison

asked the Secretary of State for Industry how much taxpayers' money has been paid out in the last 12 months to support industrial firms in financial difficulties.

Mr. Gregor Mackenzie

In the 12 months up to 31st January 1976, payments of just over £74 million have been made to firms under Part II of the Industry Act 1972 arising from circumstances in which companies have sought assistance to overcome immediate financial difficulties.

Mr. Morrison

Is the hon. Gentleman happy that none of the money will be wasted? Having fallen at the first fence with the Scottish Daily News, is he certain that he is backing winners?

Mr. Mackenzie

As my right hon. Friend has just said, there are risks, but the whole point of Part II of the 1972 Act is to restore a company in financial difficulties—to help it to get on its feet and save a number of jobs. The Scottish Daily News is a matter for my right hon. Friend the Secretary of State for Scotland.

Mr. Rooker

Will my hon. Friend confirm that after the assistance to Chrysler and the proposed sacking of 8,000 shop floor workers, the management has been strengthened and the board of directors now exceeds 50 in number?

Mr. Mackenzie

I do not believe that that matter arises on this Question, but if my hon. Friend tables a Question I shall be pleased to answer it.

Mr. Cormack

Can the hon. Gentleman say how much was paid in tax by private industry during the period in question? If not, will he write to me giving the figure?

Mr. Mackenzie

I cannot answer without notice, so I shall write to the hon. Gentleman.

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