§ Mr. Ronald Brownasked the Secretary of State for Industry what further industry schemes he proposes under Section 8 of the Industry Act 1972.
§ Mr. VarleyI propose to make £20 million available initially under a scheme to assist the electronic components industry under Section 8 of the Industry Act 1972.
The scheme will provide grants for up to 25 per cent. of the costs of projects concerned with design, development and production, lauching of new products or production technologies; loans of up to 30 per cent. at the concessionary rate with an interest-free period of up to three years of the costs involved in restructur- 418W ing of a company or a group of companies; and grants up to 20 per cent. for new equipment, plant and machinery and grants up to 15 per cent. for associated new buildings. Encouragement will also be given under the Scheme to the use of consultants by companies to identify opportunities for improving efficiency.
I am also introducing a scheme of selective assitance to non-ferrous foundries under Section 8 of the Industry Act 1972. The main features of the scheme will be as follows:
The financial allocation for the scheme will be up to £20 million.
- (1) A grant of 25 per cent. of net eligible costs will be available for investment in new plant and machinery. The minimum project size will be £25,000.
- (2) A grant of 15 per cent. of net eligible costs will be available for investment in new buildings. The minimum project size will be £50,000.
- (3) Assistance will be available for projects involving elements other than investment in plant, machinery and buildings, for example rationalisation or merger projects. This will be normally in the form of an interest relief grant, although in some cases loans will be made. The minimum project size will be £50,000.
- (4) For small firms a grant of 50 per cent. of approved consultancy fees will be considered.
Both schemes will operate with effect from today. I am placing details of the schemes in the Library of the House.