HC Deb 05 May 1967 vol 746 cc123-4W
Mr. Barnett

asked the President of the Board of Trade if he will give the amount of applications to date for investment grants, showing separately, amounts from development and non-development districts, the amounts agreed, how the claims compare with his original estimate of applications and with the information available to him of plant produced; and if he will make a statement.

Mr. Jay

By 21st April, 1967, 10,273 applications worth £174 million had been received. I hope to be able to provide separate figures for development and non-development areas in about two months when most of the claims for the first quarter of 1966 should have been received and processed. On the last part of the Question, I would refer my hon. Friend to my reply to his supplementary Question on 26th April.—[Vol. 745, c. 1577].

Mr. Barnett

asked the President of the Board of Trade what research he has carried out as to the percentage of firms that have not made application for investment grants, despite their being entitled to do so; and if he will make a statement.

Mr. Jay

None. There is no closing date for applications which are now coming in at an increasing rate for both the first and second quarters of 1966.

Mr. Costain

asked the President of the Board of Trade how many staff are employed by his Department to investigate investment grant claims; how many claims have been made on the appropriate forms to the latest convenient date; and how many of these have been paid.

Mr. Jay

1,159 staff were employed in the investment grants offices on 21st April, 1967. By that date 10,273 claims had been received, and 3,278 payments had been made.

Mr. Barnett

asked the President of the Board of Trade if he will indicate the basis on which his original estimate was made of the cost of investment grants in 1967–68 and the new basis for the amount shown in the Financial Statement 1967–68; to what extent allowance was made for claims not being made due to ignorance of the procedures; and if he will make a statement.

Mr. Jay

The original estimate, made early last year, of the cost of investment grants in 1967–68, was of the order of £200 million, and was based on estimates of eligible investment in the first three quarters of 1966. The revised figure of £166 million in the Financial Statement made some allowance for delays in the receipt and clearing of claims, and for the likelihood that some firms instead of switching immediately to investment grants would continue for a time to claim investment allowances. The procedures have been fully explained and publicised, and the flow of claims is accelerating.