HC Deb 08 February 1971 vol 811 cc8-9W
61. Mr. Varley

asked the Secretary of State for Trade and Industry if he will now list in the OFFICIAL REPORT the number of firms which were planning new industrial or commercial projects in the development areas and intermediate areas who have indicated that they are reviewing their position since changes in financial incentives announced in October, 1970.

Sir J. Eden

Thirty-six, but several firms have recently told us that they now intend to go ahead. Seven abandonments have been notified to us, of which abandonment was alleged to be due in part to changes in investment incentives in two cases only. It has been the policy of successive Governments not to publish information about individual firms.

74. Mr. Blenkinsop

asked the Secretary of State for Trade and Industry what further action he proposes to take to increase industrial investment in the development areas.

Sir J. Eden

The measures announced by my right hon. Friend the Chancellor of the Exchequer on 27th October, 1970, should encourage the development of efficient and competitive industry in the development areas.

102. Mr. McMaster

asked the Secretary of State for Trade and Industry what additional measures the Government intends to take to encourage an expansion in current industrial investment in the development areas of Great Britain and Northern Ireland; and if he will make a statement.

Sir J. Eden

The Government's regional policy measures are at present under review, and an announcement will be made as soon as possible. Discussions are in progress with Northern Ireland about their proposals for investment incentives and an announcement is expected shortly.

Mr. Douglas

asked the Secretary of State for Trade and Industry if he will give estimates of the differential between development areas and non-development areas under the system of cash grants of 40 per cent. and 20 per cent., and under the system of free depreciation and 60 per cent. depreciation in one year and 15 per cent. to 25 per cent. depreciation on the declining balance using discounted cash flow techniques, estimating the asset life to be 10 years and using appropriate rates of discount.

Sir J. Eden

No. Such figures provide an insufficient and misleading basis for comparing the old and new regional incentives because, amongst other things, a wider range of assets and a larger number of taxpayers will attract free depreciation than attracted the higher rate of investment grant.