HC Deb 20 January 1983 vol 35 cc207-8W
Mr. Ernie Ross

asked the Secretary of State for Scotland if his Department scrutinises the transfer pricing policy of multinational companies before deciding whether assistance under the Industry Act 1972 is to be offered following a request for such.

Mr. Alexander Fletcher

Before regional selective assistance is offered to companies under section 7 of the Industry Act 1972, a full appraisal of the project, including pricing policy is always undertaken.

Mr. Ernie Ross

asked the Secretary of State for Scotland if his Department investigates the reasons for non take-up when a company, offered financial assistance from central Government, does not take up that offer; if such investigations have occurred in Dundee; and if he will make a statement.

Mr. Alexander Fletcher

My Department monitors all projects for which offers of regional selective assistance under section 7 of the Industry Act 1972 have been accepted to encourage timely application for payments of grant. This practice has been observed in relation to all such projects in Dundee.

Mr. Ernie Ross

asked the Secretary of State for Scotland what information his Department collects on the nature of Government assistance to, and intervention in, companies' research and development policies and manufacturing strategy in other European Economic Community countries; and how these compare with Scotland.

Mr. Alexander Fletcher

My Department does not collect detailed information of the assistance available to individual companies in European countries. However, I am aware of, and my Department did support financially, the study commissioned by the Department of Industry from the University of Strathclyde about the national aids to industry offered by member states of the Community.

Mr. Ernie Ross

asked the Secretary of State for Scotland if he will publish a table showing the amount of selective assistance made to companies in manufacturing industry for Dundee since July 1979 showing (a) the company, (b) if the assistance was a grant or interest relief grant, (c) the amount of assistance committed, (d) if the project was an employment creation or employment safeguard project and (e) if the grant was for research and development or production.

Mr. Alexander Fletcher

Information about individual offers of assistance is held in confidence, but details of offers of £5,000 or more are published inBritish Business after the first payment has been made to the company. Since 1 July 1979, 32 offers of assistance totalling £10.1 million have been made to manufacturing companies in Dundee under section 7 of the Industry Act 1972. Seventeen offers were of grants totalling £4.4 million for employment creating projects; four of grants totalling £1.4 million for employment safeguarding projects; nine of interest relief grants totalling £4 million for employment creating projects; and two of interest relief grants totalling £0.3 million for employment safeguarding projects.

All the offers were predominantly for production-related investment.