HC Deb 28 February 1977 vol 927 cc82-4W
Mr. Kenneth Clarke

asked the Secretary of state for industry in each of the last five years, how many applications for selective financial assistance under Section 7 of the Industry Act 1972 have been refused on the grounds that the undertaking applying did not have good

Applications received Applications rejected as ineligible Proportion of total per cent
1972 361 39 10.8
1973 1,503 133 8.8
1974 1,195 87 7.3
1975 920 70 7.6
1976 1,061 31 2.9

Information is not readily available on how many of the ineligible applications were rejected because of the doubtful financial viability of the projects concerned.

Mr. Hicks

asked the Secretary of State for Industry how many civil servants are employed in administering regional policies in respect of Sections 1 and 7 of the Industry Act 1972; and what is the cost to the Exchequer.

Mr. Cryer

Adminisration of schemes of assistance under Part I of the Industry Act 1972 is the concern of the Regional Development Grants Division of my Department including the Regional Development Grants offices at Billing-ham, Bootle, Cardiff and Glasgow. The number of civil servants employed on this work during the current financial year averages 520 at an estimated total cost of £3 million. The estimated total of grant payments during the year is £400 million.

Administration in England of schemes of selective financial assistance under Section 7 of the Act is spread over a number of divisions in the headquarters and regional offices of my Department. My right hon. Friend the Secretary of State for Scotland and my right hon. and learned Friend the Secretary of State for Wales are respectively responsible for schemes in those countries. The estimated total of assistance payable during the year is: England £29.8 million: Scotland £10.2 million; Wales £5.1 million. The civil servants employed on this work mostly have other duties. To assess the proportion prospects of viability or that the project proposed did not have sound commercial prospects; and what proportion of the total application this represented.

Mr. Cryer

The numbers of applications received and rejected for each of the years ending 31st December is as follows: of their time spent on Section 7 activities would, I am afraid, involve disproportionate cost.

Mr. Hicks

asked the Secretary of State for Industry what has been the total amount each year of regional development grant paid on buildings and machinery to each assisted area since the Industry Act 1972; what estimates he has made of what would have been the equivalent amount paid if £500 of regional development grant had been paid for each new job created.

Mr. Cryer

Information on the total amounts of grant paid, by assisted areas, has been published in the four annual reports presented to Parliament for the financial years 1972–73 to 1975–76. Information on the current financial year will be published as soon as possible. Regional development grants are not employment related, and no estimates are available of the numbers of new jobs created by the expenditure on which grant is claimed and paid.

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