HC Deb 15 February 1971 vol 811 cc355-7W
Mr. Mudd

asked the Secretary of State for Trade and Industry if he will list the benefits for industry and the clearance of dereliction now available in the Municipal Boroughs of Falmouth and Penryn, and in the urban district of Camborne-Redruth; what effects these are having on the attraction of new industry and the expansion of existing firms; how many advance factories are currently available and where; how many advance factories are planned, occupying what area and where; and what publicity is being used for attracting additional employment into the area.

Mr. Anthony Grant

The Municipal Boroughs of Falmouth and Penryn and the Urban District of Camborne-Redruth are part of the South-West Development Area. Development Areas benefit from the following preferential measures:

  1. (i) Capital expenditure on new machinery and plant (other than mobile equipment) for use for industrial purposes in a development area will qualify —as announced on 27th October, 1970, and subject to legislation—for free depreciation, i.e., allowance equal to the whole of the expenditure will be given for the years in which the expenditure is incurred.
  2. (ii) Capital expenditure incurred on the construction of industrial buildings in the development areas (and the intermediate areas) qualifies for an initial allowance of 40 per cent. (The corresponding initial allowance elsewhere in Britain is temporarily 30 per cent. but this will revert to 15 per cent. after 5th April, 1972.)
  3. (iii) Subject (in the case (a) to (d)) to the provision of sufficient employ- 356 ment, and where necessary to a favourable recommendation from the Local Employment Act Financial Advisory Committee, the following assistance is available under the Local Employment Acts:—
    1. (a) Department of Trade and Industry factories for rent or sale (in the case of certain projects new to the development areas the first two years may be rent free).
    2. (b) Building grants at 25 per cent. —the normal rate—and at 35 per cent. for new undertakings being set up for the first time in circumstances which justify the giving of special assistance. As announced on 27th October, 1970, these rates are to be increased—subject to legislation—to 35 per cent., and 45 per cent., respectively.
    3. (c) Loans on favourable terms.
    4. (d) Removal grants towards certain costs incurred in transferring an undertaking to a development area.
    5. (e) Payments towards the cost of transferring key workers to new undertakings.
    6. (f) Financial assistance to local authorities, and other bodies for the improvement of basic services where this is expedient with a view to contributing to the development of industry.
    7. (g) Financial assistance to local authorities towards the cost of acquiring and improving derelict land where it is expedient with a view to contributing to the development of industry in the locality. The rate of grant for eligible derelict land clearance schemes in development areas is 85 per cent.
  4. (iv) Assistance from the Department of Employment in the form of grants towards the cost of training for extra jobs and by the provision of training courses. Assistance is also available from Industrial Training Boards in the form of grants towards the cost of (i) additional off-the-job training places for apprentices and technician trainees and (ii) new machinery and equipment needed for additional off-the-job training places at semi-skilled levels.
  5. (v) Regional employment premium —£1.50 a week in respect of each man 357 employed in a manufacturing establishment, with lower rates for women, boys and girls. (The premium will be discontinued in September, 1974.)
  6. (vi) Industrial Development Certificates are, generally, freely available in the development areas.

It will be some time before any useful assessment can be made of the impact of the new incentives.

One D.T.I. advance factory of 20,000 square feet is available at Camborne. Two more, each of 10,000 square feet, are under construction at Camborne and at Penryn.

D.T.I. uses press advertising and provides descriptive literature about the development areas as a whole. It is up to local authorities or other local interests to provide publicity to promote particular areas."