§ Mr. HindTo ask the Secretary of State for Trade and Industry what level of financial support he is offering to the regional development organisations in England for 1990–91.
§ Mr. Douglas HoggI have offered the five English regional development organisations £4 million in grant in support of their inward investment promotion activities for 1990–91, nearly £1 million more than in 1989–90: an increase of 33 per cent.
This increase in funding is to enable the United Kingdom to remain competitive in promoting its locational advantages in the face of increasing competition from the rest of Europe for mobile inward investment in the single European market.
In addition, I am pleased to announce that 1990–91 is the first year of a revised funding policy. In future the Department will fund up to 100 per cent. of qualifying United Kingdom-based inward investment activity and up to 50 per cent. of overseas-based activity.
As well as giving greater certainty to the longer term planning of inward investment promotion, it also means that regional development organisations will be able to spend any additional locally raised funds on non-inward investment activities, like regional regeneration or intra-United Kingdom promotion.
788WThe allocation of grant is as follows:
£'000 1990–91 grant Increase on 1989–90 Northern Development Company (in the North East) 1,180.0 198.3 Yorkshire and Humberside Development 850.0 190.0 INWARD Ltd. (in the North West) 840.0 299.0 West Midlands Development Agency 620.0 220.0 Devon and Cornwall Development Bureau 510.0 88.0