§ Mr. Tim Smithasked the Secretary of State for Industry if he will list all schemes of industrial assistance available to companies outside the assisted areas (a) financed through his Department and (b) financed through the EEC, giving, in each case, the justification for the scheme and the estimated cost in 1978–79.
§ Mr. Les Huckfield:The schemes of assistance set out below are open to companies both inside and outside the assisted areas. All but the last are financed by the Government.
Selective investment scheme—(allocation £150 million). This scheme kas introduced to stimulate major investment projects in the manufacturing sector yielding significant benefits to the economy. The estimated cost for 1978–79 is £7.0 million total.
Sectoral schemes. Assistance is provided for individual sectors of industry to meet their specific needs as identified by a detailed analysis of their problems, in close conjunction with the industry itself. Most schemes have provided for assistance for the costs of consultancy and for new investment; some have assisted modernisation and rationalisation of production capacity and the development of new products.
Details of the schemes, still open for applications, and an estimate of their costs in 1978–79 are as follows:
363WProduct and process development scheme. This scheme assists the design, development and launching of new products and processes: it is focused on manufacturing industry with particular emphasis on mechanical and electrical engineering. The estimated cost in 1978–79 is £3.4 million.
Microprocessor application project —allocation £15 million. This scheme was recently introduced to encourage the use of microprocessors and to help industry to adapt quickly to micro-electronic technology. The estimated cost in 1978–79 is £1 million.
Shipbuilding intervention fund. Against the background of a worldwide recession in shipbuilding, the Government introduces: this scheme to assist United Kingdom shipyards to obtain orders. The estimated cost in 1978–79 is £27.6 million, though most of this will go to assisted areas.
Shipbuilding cost escalation insurance scheme. This scheme is designed to give United Kingdom shipbuilders a measure of protection against exceptional and unpredictable increases in contract costs. The estimated cost in 1978–79 is £4.9 million. Again, in practice this will mostly benefit assisted areas.
The only European facility currently available outside the assisted areas is the following:
European Coal and Steel Community loans. Under this scheme, concessionary loans are available for projects providing job opportunities in areas affected by closures in the coal and steel industries. No estimate of the amount of loans for 1978–79 is available.