§ 50. Mr. Tom Boardman
asked the Secretary of State for Trade and Industry what he estimates will be the cash flow effect on private industry in the years 1970–71 and 1971–72 of the measures announced on 27th October, 1970, and of the decision to accelerate the payment of investment grants.
§ Mr. John Davies
The additional liquidity in private industry during 1970–71 and 1971–72 is estimated to be £60 million and £81 million respectively as a result of the measures announced on 27th October, 1970. These figures exclude the additional assistance under the Local8W Employment Acts which cannot be closely estimated.
The effect of accelerating investment grant payments, as announced on 26th February last, has been to bring forward into 1970–71 payments of about £40 million. The further effect on 1971–72 will depend on decisions not yet taken concerning the initial dates of acceptance and of payment of claims for particular periods of expenditure.