§ Mr. Hefferasked the Secretary of State for Industry if he is aware that the undertaking to review the rules under which the regional development grants scheme is operated is causing uncertainty for those making investment decisions; and if he will make a statement.
Mr. Alan WilliamsIn reply to the recommendation—H. of C. Paper 536—by the Committee of Public Accounts that the application and scope of the system of regional development grants should be reviewed, the Treasury Minute of 16th November 1977 undertook that the rules under which the scheme is operated would be reviewed bearing in mind the considerations to which the Committee had drawn attention and also the importance to the scheme of simple, objective criteria and continuity in the incentive offered. The review has been completed. I have now to inform the House of the outcome.
Given the automatic and responsive character of the scheme as prescribed by Part I of the Industry Act 1972, it would not be practicable to introduce new rules which would reduce its scope further. Nor are the Government prepared to alter its application in ways which would put at risk important objectives of their industrial strategy. Accordingly, apart from some minor changes designed to prevent abuse of the qualifying premises concept on which the scheme is based, and to which the Public Accounts Committee drew attention, no alteration to the rules of the scheme as it is currently administered is envisaged. This statement will, I trust, remove any uncertainty caused by the undertaking to conduct the review.