§ Mr. Ron Lewisasked the Secretary of State for Industry what conditions are placed upon the sale by 595W companies of machinery purchased by them from Government grants for the creation of jobs; and if he will make a statement.
§ Mr. MacGregorRegional assistance is available under section 7 of the Industry Act 1972 and section 17 of the Industry Act 1972 1980. All offers of such assistance are subject to a range of conditions reflecting the particular circumstances of each case. Provisions relating to the sale or disposal of assets are a standard condition of offer letters.
Regional development grants made under part I of the 1972 Act and section 16 of the 1980 Act are subject to a number of conditions intended to ensure that grant-aided assets continue to be used on qualifying premises for at least four years from the date they are provided. In applying for grant, the applicant undertakes to notify the Department within three months if the asset is sold or any other event specified in the conditions occurs during the four year period. The grant made then becomes repayable in whole or in part, depending on the length of the period of qualifying use.
The department may waive its entitlement to reclaim grant if an asset is disposed of for further use on qualifying premises, provided adequate assurances are given from the new owner concerning the continued use of the asset for the remainder of the conditions period.