§ Mr. Dell
asked the Chancellor of the Exchequer (1) whether he will publish his estimate of expenditure on investment incentives in development areas in 1973–74 under his new proposals as compared with what it would have been under the investment grant system;
(2) whether he will publish the calculations on which he based his assessment that the differential in investment incentives in favour of development areas 476W is maintained by his proposals of 27th October.
§ Mr. Higgins
The gross cost of the regional differential element of investment grants paid in development areas in 1969–70 was £100 million. The net value to industry was somewhat lower because annual writing down allowances on capital expenditure are given net of grant payments. Had investment grants continued at current rates, the gross cost of the regional differential element in 1973–74 would probably have risen to around £130 million at constant prices.
The new measures which my right hon. Friend announced on 27th October should maintain the value of differential assistance in development areas at a level no less than the value of the differential element in the grant scheme.