§ Mr. Pawseyasked the Secretary of State for Trade and Industry whether additional assistance can be made available under the private sector steel scheme to 152W companies contemplating further reductions in capacity where they cannot afford the costs of consequential investments which they would have to make in the remainder of their business.
§ Mr. Norman LamontI am pleased to announce that we are now prepared to consider offering assistance above the standard 25 per cent. level, on a basis according to need, towards closure costs in cases where companies are considering further reductions in capacity but cannot afford the consequential costs. Where closures do not involve consequential rationalisation costs, the level of assistance offered remains fixed at 25 per cent.
In order to conform with the Community regime for state aids to the industry, assistance is, however, limited to projects that will be at least substantially completed by 30 September 1984. Potential applicants are therefore advised to contact the Department at the earliest opportunity.
The allocation of £34.2 million for the private sector steel scheme remains unchanged.