§ Mr. Alexander Wilsonasked the Secretary of State for Trade and Industry if he will list in the Official Report the financial incentives currently available to existing industrialists to help expansion and thereby create more jobs in a development area such as Scotland.
§ Mr. Anthony GrantThe following is the information: Financial Incentives available to existing industry in Scotland
- (i) Subject to the passing of the Industry Bill now before Parliament:
- (a) Regional development grants for capital expenditure on providing new buildings and works, adapting existing buildings and providing new plant and machinery for premises used wholly or mainly for qualifying activities—principally manufacturing, construction and mining—and also on providing mining works or new plant and machinery for use in the construction industry. The rates of grant will be 22 per cent. in the special development areas, except for construction industry plant used outside qualifying premises,
17 and 20 per cent. in the rest of the development area. In the intermediate areas of Edinburgh, Leith and Portobello the grant at 20 per cent. will be available only for expenditure on buildings and works other than mining works. The grants will be made in respect of expenditure defrayed on or after 22nd March, 1972, provided that, in the case of plant, machinery and mining works, the asset was not provided before that date or, in the case of buildings and other works, construction was not begun before that date. - (b) Selective financial assistance in the form specified in the Bill for projects which are likely to provide, maintain or safeguard employment in the assisted areas.
- The Bill includes transitional provisions for building grants under Section 3 of the Local Employment Act, 1972, and loans and grants under Section 4, which will be superseded by the above arrangements.
- (ii) Regional employment premium—£1.50 a week in respect of each man employed in a manufacturing establishment in the development area with lower rates for women, boys and girls.
- (iii) Training assistance—grants for training workers for additional jobs—£15 per week in respect of each man with lower rates for women and young persons.
- (iv) In the counties of Argyll, Caithness, Sutherland, Inverness, Ross and Cromarty, Orkney and Shetland additional incentives are available over a wide range through the Highlands and Islands Development Board which can offer a special grant and take equity in appropriate cases.
- (v) Over and above the preferential incentives, firms in Scotland can benefit from countrywide taxation allowances on capital expenditure:
- (a) a first year allowance of 100 per cent. on all new and secondhand plant and machinery—other than passenger cars.
- (b) an initial allowance of 40 per cent and a 4 per cent, per annum writing-downing allowance on new industrial buildings and structure.
§ Mr. Elystan Morganasked the Secretary of State for Trade and Industry if he will now estimate what effect investment allowances have had upon the growth of manufacturing industry in Wales during 1971; and what corresponding effect the withdrawal of investment grants have had.
§ Mr. Anthony GrantIt is not possible to isolate the effect on the level of investment in 1971 of the measure to replace investment grants by investment allowances. This was only one of the measures taken by the Government to encourage investment in Wales and elsewhere.