§ Mr. James Johnsonasked the Minister of Agriculture, Fisheries and Food what adjustments will be made in grants for fishing vessels in accordance with the White Paper on Investment Incentives, Command Paper No. 2874.
§ Mr. PeartSubject to Parliamentary approval of the new arrangements, the rates of grant will be 35 per cent. for fishing vessels of 80 feet and over in length and 40 per cent. for vessels under 80 feet in length. These rates will apply not only to expenditure on new vessels and improvements which are already eligible for grant but also to certain other substantial capital expenditure on vessels. The rate of investment in new vessels will continue to be subject to an overall limitation as a safeguard against overbuilding.
The details will be worked out with the White Fish Authority, the Herring Industry Board and the industry and will be announced later. Meanwhile grants will continue to be available under existing schemes at the existing rates of 25 per cent. and 30 per cent. subject to the prior approval of the Authority or the Board to which applications should be made in the usual way.
The new rates of grant will be payable in respect of qualifying capital expenditure for which a legal contract was made on or after 17th January last. If prior approval is obtained from the Authority or the Board grant will be payable initially at the existing rates and where appropriate will be made up to the new rates in due course subject to Parliamentary approval.
No grant will be payable in respect of expenditure incurred without prior approval. The detailed conditions attaching to the new rates of grant and the method of claiming them will be announced as soon as possible.