Mr. James Callaghanasked the Secretary of State for Wales what is his policy with regard to grants under the Industrial Development Act 1982 to assist the expansion of privately owned tutorial colleges; what criteria are used in determining grants for such purposes; and how many such grants have been made.
§ Mr. Nicholas EdwardsPrivate sector educational establishments may qualify for grants under section 7 of the Industrial Development Act 1982 on the same basis as other projects coming within the scope of the office and service industries scheme. Applications are considered by reference to viability, additionality and the extent to which a market wider than a purely local one is served. Under arrangements announced in July 1974 details of selective financial assistance are published inBritish Business after the first payment is made. Pending such publication, information relating to individual applications is normally treated in confidence. In this instance, however, the principal of New College, Cardiff has agreed to my confirming that an offer of grant of £80,000 has been made subject to a number of conditions relating to the overall financing of the project. No other offers of assistance have been made for private sector educational institutions in Wales under this scheme.
§ Mr. D. E. Thomasasked the Secretary of State for Wales whether any applications have been made to his Department by private educational institutions for assistance under section 7 of the Industrial Development Act 1982.
§ Mr. Nicholas EdwardsThe Welsh Office has received two such applications.
§ Mr. D. E. Thomasasked the Secretary of State for Wales what are the criteria used by his Department in considering financial support under the Industrial Development Act 1982 for (a) manufacturing companies, (b) service industries and (c) educational establishments.
§ Mr. Nicholas EdwardsThe main criteria used in considering applications for assistance are the same for both manufacturing and service industries. Projects must have good prospects of viability, must create new jobs or safeguard existing jobs and should strengthen the national and local economy. The greater part of project costs must be financed by the applicant or from private sector sources and the applicant must show that without assistance the project will not take place either at all or on the basis proposed. Assistance is not normally given for projects which have already begun.
In addition to these general criteria, applications under the office and service industries scheme must demonstrate that the business to be established by a project will serve a market wider than a purely local one. Private sector educational establishments may qualify for assistance on the same basis as other projects coming within the office and service industries scheme. No separate criteria are applied to this type of project.
§ Mr. D. E. Thomasasked the Secretary of State for Wales if he will now consider changing the arrangements announced by the then Secretary of State for Industry on 31 July 1974 for disclosing details of financial assistance to individual companies under provisions currently enacted in the Industrial Development Act 1982.
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§ Mr. D. E. Thomasasked the Secretary of State for Wales if he will introduce legislation to enable local education authorities to apply for assistance under section 7 of the Industrial Development Act 1982.