§ Mr. Lubbockasked the President of the Board of Trade in what circumstances his Department allows a plant hirer to receive the full 40 per cent. grant on the purchase of plant in a development area.
§ Mr. DellA plant hirer may receive a 40 per cent. grant on plant which he provides new for hiring out for use in a development area for a minimum period of three years by a qualifying lessee, who, had he bought the asset outright, would have been eligible for the 40 per cent. development area rate of grant.
§ Mr. Lubbockasked the President of the Board of Trade why, in a development area, plant hirers are treated by his Department in a different manner from contractors in the matter of investment grants in the purchase of new plant.
§ Mr. DellI assume the hon. Gentleman is referring to plant hirers in the construction industry where it is the usual practice for contractor's plant to be hired out for short periods. It is impracticable to apply to such hirers the normal conditions attaching to investment grants to ensure, for example, that grant-aided assets continue to be used by qualifying lessees in a development area. The Industrial Development Act therefore makes special provision whereby plant hired for short periods in the construction industry can attract a 20 per cent. grant, which rate applies whether or not the plant is initially hired out for use in a development area.