HC Deb 10 May 1976 vol 911 cc18-9
17. Mr. Hooson

asked the Secretary of State for Industry what help the Government give generally in helping prosperous firms to expand so as to increase employment facilities in the United Kingdom.

Mr. Alan Williams

The most important incentives for increasing investment are the 100 per cent. first-year tax allowance for expenditure on plant and machinery, available throughout the country, and, in the assisted areas, the regional development grant. A wide range of other instruments, including selective financial assistance, are also available for increasing investment and job opportunities.

Mr. Hooson

Does the hon. Gentleman agree that one of the surest ways of reducing unemployment is to help those industries which are expanding and prosperous? Has he had a survey conducted in the Department to discover how many British firms have expanded abroad in recent years—firms that could have expanded here but have expanded abroad because they have been given special help by Governments in, say, France and Holland to do so?

Mr. Williams

As the hon. and learned Gentleman knows, we are carrying out a series of sectoral examinations of our industry in conjunction with the NEDC, and these will help us to identify problems where they exist over a wide range of British industry. We also have the accelerated investment scheme, which is being used to bring forward investment in what is still a trough situation. This is proving to be a very worthwhile venture on the Government's part and is giving returns of about 7 to 1 in terms of investment in relation to Government expenditure.

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