§ Mr. Scott-Hopkinsasked the Secretary of State for Trade and Industry whether he will accelerate the payment of investment grants due to claimants bearing in 293W mind, amongst other things, the failure of Rolls-Royce.
§ Mr. John DaviesYes, I have decided that investment grant payments relating to capital expenditure in the quarter April-June, 1970, will be paid one month earlier: that is, from 1st March, 1971, instead of from 1st April. This acceleration in grant payment will be made in respect of all claimants and will provide some £10 million to £20 million extra cash flow to industry in the month of March. Additionally, payment of claims in respect of expenditure incurred 1st July-26th October, 1970, will be brought forward by three months to begin on 1st April, 1971, which will increase the cash available to industry in the period to the end of June by up to a further £30 million. I believe that this bringing forward of payments which would eventually be done to industry in any case will be helpful in the context of current liquidity problems.