HC Deb 01 November 1979 vol 972 cc630-1W
Mr. Skinner

asked the Secretary of State for Industry what financial assistance has been paid or authorised under sections 7 and 8 of the Industry Act between May and the latest available date, compared with May and the comparable date in 1978; how many applications for assistance have been received and how many authorised between May and the latest available date, compared with May and the comparable date in 1978; what totals of assistance were received by industry in each period; how many jobs were involved; and if he will make a statement indicating what changes have been made since May in the guidelines relating to such applications and whether any further changes are contemplated.

SECTION 7 OF THE INDUSTRY ACT 1972
1 May to 30 September 1978 1 May to 30 September 1979
Number Value (£ million) Estimated employment associated with projects Number Value (£ million) Estimated employment associated with projects
1. Applications received:
(a) Resulting in offers 171 81.6 19,000 185 109.4 18,400
(b) Rejected or withdrawn 22 4.7 1,000 34 8.5 2,800
(c) Still under consideration on 30 September 383 123.9 33,300 496 33.5 38,600
Total applications 576 210.2 53,300 715 151.4 59,800
2. Total offers made 457 37.5 32,200 524 57.4 40,100
3. Payments made 956 21.1 1,104 25.0
Note: These totals exclude special assistance to the shipbuilding industry under section 7 of the Industry Act and a grant of £75 million offered in January 1978 to the Ford Motor Company.
SECTION 8 OF THE INDUSTRY ACT 1972
1 May to 30 September 1978 1 May to 30 September 1979
Number Value (£ million) Number Value (£ million)
1. Application received:
(a) Resulting in offers 164 4.6 469 2.2
(b) Rejected or withdrawn 132 1.9 105 0.6
(c) Still under consideration on 30 September 723 41.0 550 9.3
Total application 1,019 47.5 1,124 12.1
2. Total offers made 790 62.1 789 19.2
3. Payments 595 23.6 533 15.4
Notes:
(1) These totals are exclusive of special assistance to individual companies.
(2) Selective financial assistance under section 8 is not linked directly to employment and no statistics on employment associated with the projects are readily available.

The Government announced to the House on 17 July their regional policy and the changes they were proposing to make on selective assistance under both section 7 and section 8 of the Industry Act. The changes are designed to concentrate assistance on areas most in need and to make it more cost effective. As and when further changes are contemplated they will be announced to the House.