§ Mr. Cryerasked the Secretary of State for Industry if he will make a statement about the scheme of assistance to the wool textile industry under Section 8 of the Industry Act 1972.
§ Mr. Kaufman,pursuant to his reply [Official Report, 15th January 1976; Vol. 903, c. 233], gave the following additional information:
There have been 208 applications under the scheme up to 31st December 1975, the closing date for applications. These projects represent investment worth approximately £83 million of which £59.5 million will be for new plant and machinery and £22 million will be in new and modernised buildings. About £28 million of this investment has already taken place, and the remaining £55 million will be invested in the two years to 31st December 1977, which are allowed to firms to complete their projects.
The effects of the scheme will be assessed by the Wool Textile EDC. There is every indication that at a time when investment in industry generally and in textiles in particular is showing a marked decline, investment by the wool textile industry compares well with previous years, and with the rest of the textile industry. The industry should, therefore, be in a strong position to meet the demands on it which will result from the expected upturn in trade.
The Government's contribution to all the projects submitted under the scheme will require more than the sum initially allotted to the scheme. It has, therefore, been decided to increase this sum to about £18 million so that all projects which satisfy the conditions of the scheme and were submitted before the closing date can be assisted.