§ Mr. Spellerasked the Secretary of State for Trade and Industry how the changes in development area status affect grants for improvements or new building work in the hotel and catering industry in what were development or assisted areas.
25W
§ Mr. TrippierRegional selective assistance is rarely given to the hotel and catering industry because tourism and tourism-related projects are normally considered for selective aid under section 4 of the Development of Tourism Act 1969, which covers the whole of Great Britain. The changes to the assisted areas will not affect assistance under that Act, which is available for all types of tourism development. Selective regional assistance will be available to eligible projects on the basis of the old map of assisted areas provided that the application was received before 28 November.
Regional development grants have been available in respect of approved capital expenditure incurred on the provision of new capital assets (including buildings and works) on premises used wholly or mainly for qualifying activities. The premises had to be in a development (or special development) area. The hotel and catering industry as such was not a qualifying activity, but industrial canteens were typically located on qualifying premises.
Grant is still payable under the old scheme, and on the basis of the former map of assisted areas, in respect of expenditure defrayed before 29 November 1984, assets provided before 29 November 1985, or assets provided under certain categories of project in receipt of selective assistance or of an offer of such assistance made before 29 November 1984.