Regional Development Grants

HC Deb 15 November 1973 vol 864 cc255-6W

Mr. Dixon

asked the Secretary of State for Trade and Industry whether regional development grants are payable in respect of the following items, and at what rate: new industrial buildings, new agricultural and forestry buildings and works, new ships, new mining works, new scientific research assets, new fuel saving plant, other new plant and machinery, dredging and second-hand plant.

Mr. Anthony Grant

Under Part I of the Industry Act 1972, eligibility depends on the circumstances as well as on the nature of the assets. Grant may be made on new buildings and works on qualifying premises in a development area, an intermediate area, or, in the case of assets provided before 22nd March 1974, a derelict land clearance area.

Qualifying premises are those used wholly or mainly for qualifying activities as defined in the Act, principally manufacturing, mining and construction and including scientific research relating to other qualifying activities. Since agriculture and forestry are not qualifying activities, agricultral and forestry buildings and works do not qualify for grant unless they form part of larger premises in the same occupation used mainly for some other, qualifying, activity.

New mining works in development areas are eligible for grant whether they are provided on qualifying premises or not.

New plant and machinery is eligible for grant when provided for use in development areas either in qualifying premises or in activities described in Order XX of the Standard Industrial Classification—that is, construction activities. Whether a grant may be paid on particular items such as dredging and fuel saving plant or scientific research assets depends on whether they have been provided for use in qualifying premises or construction activities in the development areas.

Previously used plant is ineligible and, in general, so are ships.

The rate of grant is 20 per cent. of the approved capital expenditure, except in the special development areas where the rate is 22 per cent. for assets on qualifying premises and for mining works.

There is a general rule that grants are not payable in respect of items of plant or machinery and mining works costing less than £100 each or in respect of buildings and works, other than mining works, costing less than £1,000.