HC Deb 24 October 1975 vol 898 cc296-7W
Mr. Madden

asked the Secretary of State for Industry how much public assistance has been given to the textile industry, including support for modernisation schemes, over the last five years; if he will give details of financial support which is currently available to the industry; and whether any specific subsidy or support is available in respect of the increasing cost of oil, on which certain sections of the industry rely extensively.

Mr. Kaufman

I give below the figures showing identifiable financial assistance to the textile industry for the last five years.

The financial support currently available to the textile industry includes two schemes of assistance under Section 8 of the Industry Act:

  1. (a) The Wool Industry Scheme: £15 million is available under the Scheme to assist the wool textile industry to maintain its competitive position in the long term by rationalising its production facilities, improving its structure and eliminating uneconomic capacity;
  2. (b) The Clothing Industry Scheme: up to £20 million will be made available under this scheme for reorganisation, State for Industry how much public assisrestructuring and modernisation to increase productivity and efficiency in the 297 industry. Details of the scheme were announced by my right hon. and noble Friend the Minister of State on 15th October 1975.

In addition the textile industry also qualifies for appropriate regional incentives, including Government-built factories, regional employment premium, etc., for expansion or development in the assisted areas. The Temporary Employment Subsidy and the Recruitment Subsidy for school leavers are available to the textile industry irrespective of the location of individual firms.

No specific subsidy or support is available in respect of increases in the cost of oil. Identifiable Financial Assistance to the Textile Industry for the last five years is as follows (£,000 unless otherwise stated).

  1. 1. Research associations: 1971, 371; 1972, 357; 1973, 320; 1974, 349; 1975 to date, 332.
  2. 2. Grants under the Local Employment Act, (excluding factory assistance): 1970–71, loans 1,972, grants 4,790; 1971–72, loans 1,360, grants 3,170; 1972–73, loans 890, grants 1,992; 1973–74, loans nil, grants 1,736; 1974–75, loans nil, grants 21.
  3. 3. Offers of assistance under Section 7 of the Industry Act 1972: 1972–73, not available; 1973–74, 4,900; 1974–75, 3,600.
  4. 4. Wool Textile Scheme under Section 8 of the Industry Act 1972: £11 million has been committed since the beginning of the scheme of which £4.8 million has been paid out.
  5. 5. IRC Loans: 1970–71, 1,600; 1971–72, 1,400; 1972–73, nil.
  6. 6. Investment Grants: 1970–71, 29,300; 1971–72, nil. No analysis by industry available for later years.
  7. 7. Regional Development Grants: 1972–73 1,000; 1973–74, 7,700; 1974–75, 14,520.
  8. 8. Grants in aid to the Textile Council, Clothing Export Council and National Wool Textile Export Corporation: 1970–71, 55.

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