§ Mr. Leeasked the Secretary of State for Industry whether he can announce the Government's conclusions on the future of regional industrial policy.
§ Sir Keith JosephI refer my hon. Friend to the statement which I made after questions today. Fuller details of the changes which we are introducing are given below.
Assisted Area Boundaries and Gradings
A list of the changes in the AAs is attached. The effect will be to cut the proportion of the employed population of Great Britain covered by the AAs from over 40 per cent., to around 25 per cent.
Three " travel to work " areas—TTWAs—all in the South-West, are to be added to the AAs as IAs. They are: Torbay, Dartmouth and Kingsbridge.
Five TTWAs which are now IAs—Mexborough, Plymouth, Rhyl, Rotherham and Wigan—are to become development areas—DAs.
Four TTWAs, and part of a further one, which are now DAs,—Ayr, Kilmarnock, Redruth, Wrexham and the Largs employment office area—other than the Isles of Cumbrae—are to become special development areas—SDAs.
Upgradings within the AAs and additions to the AAs will have immediate effect.
Where a place which is now en IA is to become a non-assisted area—non-AA —there will be a three-year transitional period. Where a place is to go down by more than one AA grading it will retain its present grading—subject to transitional arrangements—for one year. It will then descend one step and retain that temporary grading for two years after which it will move to its final grading, subject to the review arrangements—see below. Other changes—i.e. those involving places which are to remain as AAs but which will go down one step only—will take place after one year's transition. Regional development grant—RDG—will be paid on assets provided during these transitional periods.
481WThe Government will review after two years the progress of areas which it is envisaged will become non-AAs as a result of going down by more than one step.
Regional Development Grants
Rates of Grant
RDG is at present payable at the rate of 22 per cent. in the SDAs and 20 per cent. in the DAs on capital expenditure incurred for the provision of new plant and machinery, buildings and works and at the rate of 20 per cent. in the IAs on new buildings and works. RDG will continue to be paid at the present rate in the SDAs because of the extent of their problems of unemployment and related economic weakness, but the following changes are to be made in the grant payable in the DAs and IAs.
The rate of grant payable in the DAs is to be reduced to 15 per cent. and a draft order giving effect to this proposal has today been laid in both Houses. It is my intention that grant should cease to be paid in the IAs and this will be achieved initially by the exercise of my discretion but the Industry Act 1972, will be amended as soon as possible in order to give effect to this change.
In order that these changes may take effect gradually it is intended that grant will continue to be payable at the former rate of 20 per cent. in both the DAs and IAs on expenditure defrayed before 18 July 1979 and additionally on those assets provided before 1 August 1980. The four month deferment on payment of approved claims introduced on 12 June 1979, will continue.
Minimum Values
RDG is not now paid on individual items of machinery or plant costing less than £100 or on individual buildings, extensions of buildings, adaptations or works costing less than £1,000 except in the case of certain small works where a limit of £100 applies. These levels have applied since March 1972 and the levels are now to be increased to £500 in respect of plant and machinery and £5,000 in respect of buildings and works. These changes will apply to expenditure defrayed on or after 18 July 1979.
482WEligibility for RDG where there is a change of AA status
In areas which are to change to a lower category of AA, or to cease to be AAs, entitlement to RDG will continue at present rates on expenditure defrayed before 18 July 1979, and on assets provided before 1 August 1980. In those areas which are to become DAs from 1 August 1980, and then IAs or non-AAs from 1 August 1982, RDG at the rate of 15 per cent. will be payable on assets provided on or after 1 August 1980, and before 1 August 1982. In those areas to become DAs from 1 August 1980, and not designated for further change on 1 August 1982, RDG will be payable at the rate of 15 per cent. in accordance with the general rules of the RDG scheme on expenditure incurred in the provision of eligible assets. In areas designated as IAs from 1 August 1980 grant will be payable on expenditure defrayed before 18 July 1979, on assets provided before 1 August 1980. In areas which are upgraded RDG will be payable at the rate appropriate to their new assisted area status from 18 July 1979. Where, however, an area is designed as an IA RDG will be payable only on buildings and works provided before 1 August 1980. In areas upgraded from IAs to DAs the rate of RDG payable will continue to be 20 per cent. for buildings and works on buildings and works provided before 1 August 1980, and thereafter 15 per cent.
Explanatory Notes
Fuller details of all these changes are available in explanatory notes, copies of which are available in the Library of the House.
Regional Selective Assistance
In future regional selective assistance will be provided only where it is necessary to enable projects to go ahead. Particular attention will be paid to the provision of more productive and more secure jobs.
Factory Building
Factory building is a useful and relatively inexpensive instrument of regional industrial policy and will continue. The Government intend to secure a greater element of self-financing.
Work of Development Agencies
The functions of the Scottish Development Agency, the Highlands and Islands 483W Development Board, the Welsh Development Agency, the Development Board for Rural Wales, the Development Commission and the Council for Small Industries in Rural Areas are unaffected by this announcement. We shall be examining the future role of these bodies in those parts of their present territories which, subject to the review—see above—are to become non-AAs.
Industrial Development Certificates
I am satisfied that it is necessary to retain industrial development certificates—IDCs—in order that large projects, which will produce a considerable number of new jobs, can be identified at an early stage and the possibility of carrying them out in the AAs can be discussed with the companies concerned.
On the other hand, I recognise that very few IDC applications have been refused in recent years, and it is clear that the current arrangements place an unnecessary burden on industry. In particular, IDCs are now freely available in the IAs so that the requirement has only a limited practical effect there. I therefore intend to exempt all IAs from the need for IDCs, including those IAs which are to become non-AAs in three years' time, although these areas will again be come subject to the IDC requirement when they become non-AAs.
The exemption limit will be raised to 50,000 sq. ft. throughout the non-AAs, including the South-East. This will enable large projects to be identified, while enabling smaller projects to go ahead more quickly.
484W
AREAS WITH CHANGED STATUS TTWA\EOA Present status Revised status Date(s) of change(s) Scotland Aberdeen TTWA IA Non AA 1 August 1982 Aberdeen EOA (including Inverurie EOA) Stonehaven EOA Ayr TTWA DA SDA* 18 July 1979 Ayr EOA Troon EOA Dumfries TTWA DA Non AA IA 1 August 1980 Dumfries EOA Non AA 1 August 1982 Annan EOA Lockerbie EOA Edinburgh TTWA DA Non AA IA 1 August 1980 Dalkeith EOA Non AA 1 August 1982 Edinburgh EOA Leith EOA Loanhead EOA Musselburgh EOA Portobello EOA Tranent EOA Penicuik EOA These changes in the IDC arrangements will come into effect on 6 August 1979.
Other Government Policies
The results of the Government's review of regional industrial policy will be taken into account in considering the future operation of other Government policies affecting the location of industry and the AAs.
Public Expenditure
The public expenditure provision in 1982–83 contained in Cmnd. 7439 for RDGs, regional selective assistance, and the provision of land and buildings was £609 million at 1979 survey prices. Following the changes proposed we are reducing this requirement by £233 million.
Orders
I am laying before the House today the following four orders:
The Regional Development Grants (variation of prescribed percentages) Order 1979;The Assisted Areas Order 1979;The Town and Country Planning (Industrial Development Certificates: Exemption) Order 1979;The Town and Country Planning (Industrial Development Certificates) Regulations 1979;required to introduce these changes.Debate
My right hon. Friend the Leader of the House will be announcing shortly the date for a debate at the conclusion of which will be moved the affirmative resolution for the RDG order.
485W486W 487W
TTWA\EOA Present status Revised status Date(s) of change(s) Greenock TTWA Largs EOA only DA SDA* 18 July 1979 Kilmarnock TTWA DA SDA* 18 July 1979 Kilmarnock EOA (including Newmilns EOA) Kirkcaldy TTWA Leven and Methd EOA only SDA DA 1 August 1980 Perth TTWA DA Non AA IA 1 August 1980 Perth EOA Non AA 1 August 1982 Crieff EOA Stirling TTWA DA 1A 1 August 1980 Stirling EOA Alloa EOA Anstruther EOA DA 1A 1 August 1980 Banff EOA DA Non AA IA 1 August 1980 Buckie EOA DA Non AA Non AA 1 August 1982 Castle Douglas EOA DA IA 1 August 1980 Cupar EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Elgin EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Eyemouth EOA DA Non AA Forfar EOA DA Non AA Forres EOA DA Non AA Fraserburgh EOA DA Non AA Galashiels EOA DA Non AA Girvan EOA SDA DA 1 August 1980 Haddington EOA DA Non AA IA 1 August 1980 Non AA 1 August 1981 Hawick EOA DA Non AA Huntly EOA DA Non AA Kelso EOA DA Non AA Kirkwall EOA DA Non AA Lerwick EOA DA Non AA Montrose EOA (including Brechin EOA) DA Non AA Nairn EOA DA Non AA Peebles EOA DA Non AA Peterhead EOA DA Non AA St. Andrews EOA DA Non AA Wales Caernarvon TTWA SDA DA 1 August 1980 Caernarvon EOA Bangor EOA Bethesda EOA Penygroes EOA Llandudno TTWA Conwy EOA only DA IA Llanelli TTWA Amman ford EOA SDA DA Garnant EOA Burry Port EOA Kidwelly EOA DA IA Tumble EOA Llanelli EOA Merthyr Tydfil TTWA SDA DA Merthyr Tydfil EOA Treharris EOA Neath TTWA SDA DA Neath EOA Resolven EOA Newport TTWA DA 1 August 1980 IA 1 August 1982 Newbridge EOA SDA IA Risca EOA DA IA 1 August 1980 Pontypridd TTWA SDA DA Pontypridd EOA Llantrisant EOA Tonyrefail EOA only Port Talbot TTWA Cymmer EOA SDA DA Maesteg EOA SDA DA Port Talbot EOA DA IA Bridgend EOA DA IA Porthcawl EOA DA IA 488W 489W
TTWA\EOA Present status Revised status Date(s) of change(s) Wales—contd. Pwllheli TTWA SDA DA 1 August 1980 Pwllheli EOA Porthmadog EOA Swansea TTWA Pontardawe EOA SDA DA Ystradgynlais EOA SDA DA Swansea EOA DA IA Gorseinon EOA DA IA Moniston EOA DA IA Wrexham TTWA DA SDA* 18 July 1979 Wrexham EOA (including Rhosllanerchrugog EOA) Cefn Mawr EOA Aberdare EOA (including Mountain Ash EOA) SDA DA 1 August 1980 Aberystwyth EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Barmouth EOA DA Non AA Blaenau Ffestiniog EOA SDA DA 1 August 1980 Brecon EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Carmarthen EOA DA Non AA Denbigh EOA DA IA 1 August 1980 Llandeilo EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Llandrindod Wells EOA DA Non AA Llangollen EOA DA IA 1 August 1980 Llanwrst EOA DA IA Machynlleth EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Newtown EOA DA Non AA Rhyl EOA IA DA* 18 July 1979 Tenby EOA DA IA 1 August 1980 Tywyn EOA DA Non AA 1A 1 August 1980 Non AA 1 August 1982 Welshpool EOA DA Non AA North Alnwick TTWA DA IA 1 August 1980 Alnwick EOA Amble EOA Darlington and South West Durham TTWA Bishop Auckland EOA (including Shildon EOA) SDA IA DA 1 August 1980 IA 1 August 1982 Darlington EOA DA IA 1 August 1980 Newton Aycliffe EOA DA IA Central Durham TTWA SDA DA Crook EOA Durham EOA Spennymoor EOA Furness TTWA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Barrow-in-Furness EOA Dalton-in-Furness EOA Ulverston EOA (including Grange-over-Sands EOA) Kendall TTWA DA Non AA Kendal EOA Windermere EOA Morpeth TTWA Ashington EOA SDA DA 1 August 1980 Bedlington EOA Blyth EOA Cramlington EOA only Whitehaven TTWA SDA DA 1 August 1980 Whitehaven EOA Cleator Moor EOA Millom EOA Workington TTWA SDA DA 1 August 1980 Aspatria EOA Cockermouth EOA Maryport EOA Workington EOA Barnard Castle EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Berwick EOA DA Non AA Carlisle EOA DA Non AA 490W 491W
TTWA\EOA Present status Revised status Date(s) of change(s) North—contd. Haltwhistle EOA SDA Non AA DA 1 August 1980 Non AA 1 August 1982 Hexham EOA DA Non AA IA 1 August 1980 Non AA 1 August 1982 Keswick EOA DA Non AA Penrith EOA DA Non AA North West Accrington TTWA IA Non AA 1 August 1982 Accrington EOA Great Harwood EOA Ashton-under-Lyne TTWA IA Non AA Denton EOA Glossop EOA Hyde EOA Mossley EOA Stalybridge EOA Ashton-under-Lyne EOA Blackburn TTWA IA Non AA Blackburn EOA Darwen EOA Bolton TTWA IA Non AA Bolton EOA Farnworth EOA Horwich EOA Westhoughton EOA Burnley TTWA IA Non AA Burnley EOA Padiham EOA Bury TTWA IA Non AA Bury EOA Heywood EOA Radcliffe EOA Ramsbottom EOA Crewe TTWA IA Non AA Crewe EOA Congleton EOA Nantwich EOA Sandbach EOA Leigh TTWA IA Non AA Leigh EOA Atherton and Tyldesley EOA Nelson TTWA IA Non AA Nelson EOA Colne EOA Northwich TTWA IA Non AA Northwich EOA Middlewich EOA Winsford EOA Manchester TTWA IA Non AA Altrincham EOA Didsbury EOA Eccles EOA Irlam EOA Levenshulme EOA Manchester City EOA Marple EOA Middleton EOA Moss Side EOA Newton Heath EOA Openshaw EOA Prestwich EOA Salford EOA Stockport EOA Stretford EOA Swinton EOA Wilmslow EOA Worsley EOA Wythenshawe EOA 492W 493W
TTWA\EOA Present status Revised status Date(s) of change(s) North West—contd. Oldham and Chadderton TTWA IA Non AA 1 August 1982 Oldham and Chadderton EOA Failsworth EOA Royton EOA Ormskirk TTWA Ormskirk EOA IA Non AA Skelmersdale EOA (excluding the New Town) Preston TTWA IA Non AA Preston EOA Bamber Bridge EOA Chorley EOA Leyland EOA Rossendale TTWA IA Non AA Rawtenstall EOA Bacup EOA Haslingden EOA Rochdale TTWA IA Non AA Rochdale EOA Littleborough EOA Warrington TTWA IA Non AA Warrington EOA Newton-le-Willows EOA Wigan TTWA IA DA* 18 July 1979 Wigan EOA Ashton-in-Makerfield EOA† Hindley EOA Barnoldswick EOA IA Non AA 1 August 1982 Chester EOA IA Non AA Clitheroe EOA IA Non AA Macclesfield EOA IA Non AA St. Helens EOA SDA DA 1 August 1980 Yorkshire and Humberside Castleford TTWA IA Non AA 1 August 1982 Castleford EOA Knottingley EOA Normanton EOA Pontefract EOA Dewsbury TTWA IA Non AA Dewsbury EOA Batley EOA Spen Valley EOA Halifax TTWA IA Non AA Halifax EOA Elland EOA Brighouse EOA Hebden Bridge EOA Sowerby Bridge EOA Leeds TTWA IA Non AA Bramley EOA Horsforth EOA Hunslet EOA Leeds EOA Morley EOA Otley EOA Rothwell EOA Seacroft EOA Wetherbv EOA Yeadon EOA Mexborough TTWA IA DA* 18 July 1979 Mexborough EOA Goldthorpe EOA Scunthorpe TTWA IA Non AA 1 August 1982 Scunthorpe EOA Barton-on-Humber EOA 494W 495W
TTWA\EOA Present status Revised status Date(s) of change(s) Yorkshire and Humberside—contd. Sheffield TTWA IA Non AA 1 August 1982 Sheffield EOA Chapeltown EOA Dinnington EOA Firth Park EOA Woodhouse EOA Wakefield TTWA IA Non AA Hemsworth EOA South Elmsall EOA Wakefield EOA Driffield EOA IA Non AA 1 August 1982 Filey EOA IA Non AA Harrogate EOA IA Non AA Huddersfield EOA IA Non AA Keighley EOA IA Non AA Malton EOA IA Non AA Northallerton EOA IA Non AA Pickering EOA IA Non AA Ripon EOA IA Non AA Rotherham EOA IA DA* 18 July 1979 Scarborough EOA DA IA 1 August 1980 Selby EOA IA Non AA 1 August 1982 Skipton EOA IA Non AA Thirsk EOA IA Non AA Todmorden EOA IA Non AA Whitby EOA DA IA 1 August 1980 York EOA IA NonAA 1 August 1982 West Midlands Oswestry EOA IA Non AA 1 August 1982 East Midlands Buxton TTWA IA Non AA Buxton EOA New Mills EOA Nottingham TTWA Heanor EOA only IA Non AA Chesterfield TTWA IA Non AA Chesterfield EOA Clay Cross EOA Eckington EOA Dronfield EOA (previously part of Chesterfield EOA) Sutton-in-Ashfield TTWA IA Non AA Sutton-in-Ashfield EOA Kirkby-in-Ashfield EOA (previously part of Sutton-in-Ashfield EOA) Alfreton EOA IA Non AA Horncastle EOA IA Non AA Louth EOA IA Non AA Worksop EOA IA Non AA South West Plymouth TTWA IA DA* 18 July 1979 Plymouth EOA Devonport EOA Plympton EOA Saltash EOA Tavistock EOA Redruth TTWA DA SDA* 18 July 1979 Redruth EOA Camborne EOA Hayle EOA Torbay TTWA Non AA IA* 18 July 1979 Ashburton EOA Bovey Tracey EOA Brixham EOA Newton Abbott EOA Paignton EOA Teignmouth EOA Torquay EOA Totnes EOA
TTWA\EOA Present status Revised status Date(s) of change(s) South West—contd. Barnstaple EOA DA IA 1 August 1980 Bideford EOA DA IA Dartmouth EOA Non AA IA* 18 July 1979 Kingsbridge EOA Non AA IA* Okehampton EOA IA Non AA 1 August 1982 * Denotes upgrading. † Including that part of the St. Helens EOA which was part of Ashton-in-Makerfield EOA inl972.
§ Mr. Kenneth Bakerasked the Secretary of State for Industry what sums of regional development grant were paid in 1972–73, 1973–74, 1974–75, 1975–76, 1976–77, 1977–78 and 1978–79 to (a) special development areas, (b) development areas
REGIONAL DEVELOPMENT GRANTS PAID £m (at 1978 Survey Prices) Special development areas Development areas Intermediate areas Total 1972–73 … … … 8 8 1 17 1973–74 … … … 78 123 20 221 1974–75 … … … 131 183 40 354 1975–76 … … … 170 213 44 427 1976–77 … … … 184 228 42 454 1977–78 … … … 156 198 32 386 1978–79 … … … 176 215 39 430