HC Deb 05 August 1975 vol 897 cc121-2W
Mr. John Evans

asked the Secretary of State for Industry what further industry schemes he proposes under Section 8 of the Industry Act 1972, following the announcement by the Chancellor of the Exchequer in his Budget Statement.

Mr. Varley

In my statement to the House on 23rd July, I announced a £20 million scheme under Section 8 of the Industry Act 1972 to assist the clothing industry.

In addition, I propose to make £25 million available under a scheme to assist the ferrous foundry industry, and a further £20 million for a scheme to assist the machine tool industry. Both these industries occupy key positions in the economy. Helping them to modernise and improve their productivity will have a beneficial effect on the support and service they provide to a wide range of manufacturing industries. The schemes are tailored to the individual circumstances of the industries concerned, and have been drawn up with the advice and help of representatives of the industries and of NEDO.

The ferrous foundries scheme will provide grants of 25 per cent. towards approved expenditure on new plant and equipment, and grants of 15 per cent. towards approved expenditure on new buildings and extensions. Concessionary loans will also be available for parts of an identifiable project not covered by these grant aid provisions.

The machine tool scheme will make available assistance in the form of concessionary loans towards the development of new machine tools to meet the demands of the market. There will also be grants of 20 per cent., in lieu of the interest rate subsidy on concessionary loans, towards approved expenditure on new plant and equipment, and of 15 per cent. towards approved expenditure on new buildings and extensions. Concessionary loans will also be available for parts of an identifiable project not covered by the other provisions of the scheme. I am also looking into the possibility of providing further assistance to help the industry through the bottom of the present downturn in orders.

Both schemes will be operated on a selective basis. Assistance will be provided only for projects approved in advance by my Department. In assessing applications for assistance the Department will put great stress on the commercial viability of the projects proposed, and the way they are integrated into an overall plan to improve the productivity of the applicant company.

Both schemes will operate as from today. Press notices are also being issued giving further details of the schemes.

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