§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what procedure is followed to review the level of the cost-per-job limits imposed on any individual offer of regional financial assistance under Section 7 of the Industry Act 1972 in order to keep the ceiling on offers in line with inflation.
§ Mr. CryerMy Department is able to review and, with the agreement of the Treasury, to amend the cost-per-job limit when it is considered appropriate.
§ Mr. Kenneth Clarkeasked the Secretary of State for Industry whether the cost-per-job limits imposed on any individual offer of regional selective financial assistance under Section 7 of the Industry Act 1972 were arrived at as a result of a bilateral 7W negotiation with the European Commission or as a result of a general arrangement whereby similar limits were imposed on offers of regional aid by other EEC Governments.
§ Mr. CryerUnited Kingdom regional aids, like those operating in other member States of the EEC, are required to conform to the provisions laid down in the "Principles of Co-ordination of Regional Aid Systems", R/650/75, a copy of which is available in the Library of the House.
This document was formulated by the Commission jointly with the member States.
The cost-per-job limit conforms with the EEC requirements, although it was not a subject of negotiation as such with the Commission.
§ Mr. Kenneth Clarkeasked the Secretary of State for Industry why the Government regard the level of cost-per-job limits imposed on any individual offer of regional financial assistance to industry under Section 7 of the Industry Act 1972 as confidential.
§ Mr. CryerIt is not usually necessary to offer the maximum incentives available under selective financial assistance to persuade companies to implement their projects. Thus, the cost-per-job limit is confidential in order to retain flexibility in these negotiations.