HC Deb 14 July 1987 vol 119 c420W
Ms. Quin

asked the Chancellor of the Duchy of Lancaster if he will make a statement as to the reasons for the decline in regional development grant assistance to the north-east of England, as detailed in the reply to the right hon. and learned Member for Monklands, East (Mr. Smith) on 2 February 1987, Official Report, column 501.

Mr. Atkins

[pursuant to his reply, 13 July 1987]: Expenditure on regional development grant is a function of the rates and scope of grant, the coverage of the development areas and the level of demand. The decline in RDG payments in the north-east appears to have resulted mainly from changes in the development and special development areas in the early 1980s and a fall in investment by manufacturing industry in the region, notably the capital-intensive petrochemicals and steel industries, as well as from changes in the scheme itself. However, the region's share of RDG payments in 1986–87 was higher than in the preceding four years.

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