HC Deb 21 July 1969 vol 787 c289W
Mr. Roy Hughes

asked the Secretary of State for Economic Affairs if he will consider seeking powers to grant assistance for the purchase of new machinery to firms already established in grey areas in order to enable them to modernise their plant.

Mr. Urwin

No. Our proposed measures of assistance should encourage new industry to move into intermediate areas and existing firms to expand their activities; but the prime responsibility for the modernisation of existing plant must remain with industry itself, aided of course by the investment grant scheme.

Mr. Roy Hughes

asked the Secretary of State for Economic Affairs if he will consider granting Government contracts to firms established in grey areas in order to improve the employment position in those areas.

Mr. Urwin

In view of the continuing needs of the development areas, the Government consider it necessary to limit the operation of the Contracts Preference Scheme to firms in development areas.