§ Mr. Nobleasked the Secretary of State for Industry (1) what discussions he has had with the EEC on the allocation of finance under sections 7 and 8 of the Industry Act 1972 for those sectors where he is required to take overall capacity into account; whether those discussions involved a definition of"overall capacity"in a European or a British context; and if he will make a statement;
721W(2) if he will list in the Official Report those sectors of British industry where he is required to take overall capacity into account in determining the allocation of finance under sections 7 and 8 of the Industry Act 1972;
(3) if he will publish the guidelines whereby his Department determines the allocation of finance under sections 7 and 8 of the Industry Act 1972 in those sectors where he is required to take into account overall capacity.
Mr. Alan WilliamsAll applications for support under sections 7 and 8 of the Industry Act 1972 are assessed in accordance with the Government's"Criteria for Selective Assistance to Industry"laid before the House on 12 January 1976. Each case is considered individually against these criteria and, whatever the sector concerned the implications of changes in capacity are taken into account when they arise. There is no fixed allocations of finance for particular sectors under sections 7 and 8 except for industry schemes where the funds allocated reflect the needs and circumstances of each sector. Proposals for all new industry schemes and the funds to be allocated are discussed with the European Commission. These discussions take account, where relevant, of likely capacity in the sectors concerned in both the United Kingdom and the European Community as a whole. The Commission has made proposals to limit regional aids to certain sectors in difficulties, and, in particular, discussions on the draft decision on steel are continuing.