§ 25. Sir B. Jannerasked the President of the Board of Trade whether he will now announce details of the plan for investment allowances in respect of leased machinery; and what arrangements will be made to consult the firms principally concerned with such leasing, including Leicester firms.
§ Mr. JayIt is intended to provide that investment grants shall be paid in respect of eligible items of plant or machinery which are leased, when new, for use in a qualifying process of manufacturing or extraction for a minimum period of three years. Grants will be paid to the lessor, who will be under an obligation to notify the Board of Trade if the equipment in question ceases to be used for the purpose, or in the place, in respect of which the grant was given. The lessor will be liable to repay the grant in such circumstances. If an eligible item of plant or machinery which qualifies for a grant on this basis is leased for use in a Development Area, it will be eligible for a grant of 40 per cent. In other cases, the grant will be 20 per cent. Grants will not be paid in respect of plant or machinery leased to persons or institutions who would not themselves be eligible to receive grants, such as local authorities or Government undertakings, or for assets for use outside Great Britain.
The possibility of extending the scheme to cover some classes of plant or machinery when leased for shorter periods than three years is still being considered. It is, however, clear that there would have to be adequate safeguards against diversion to use for non-qualifying purposes. A further announcement will be made.
619WThese proposals have been discussed with representatives of industry, including manufacturers of boot and shoe machinery in Leicester, and they are believed to be generally acceptable to industry. Special arrangements will have to be made to deal with ships, hovercraft and computers, and these will be announced as soon as possible.