§ Baroness Eccles of Moultonasked Her Majesty's Government:
Whether they have yet considered the business plans of the English Regional Development Organisations and what level of financial support they propose to offer for 1991–92?
§ The Minister of State, Department of Trade and Industry (Lord Hesketh)My honourable friend the Parliamentary Under-Secretary of State for Consumer Affairs has studied the current performance and future plans of the five English Regional Development Organisations. I am pleased to say that they continue to make a significant contribution to the overall success of the UK in attracting inward investment. In recognition of this, my honourable friend today offered the five English Regional Development Organisations (RDOs) the full allocation of £4.5 million of grant aid for their inward investment promotion activities for 1991–92, £500,000 more than in 1990–91. This increase in funding, added to the extra £1 million allocated last year, is to enable the UK to remain competitive in promoting its locational advantages in the face of competition from the rest of Europe for mobile inward investment in the Single European Market. My honourable friend has allocated the grant aid as follows:
Regional Development Organisation 1991–92 Grant £000 Percentage share of total grant Northern Development Company (NDC) 1,330 29.5 INWARD Ltd. (in the North West) 990 22.0 Yorkshire and Humberside Development Association 970 21.5 West Midlands Development Agency (WMDA) 670 15.0 Devon and Cornwall Development Bureau (DCDB) 540 12.0 Grant is offered on an annual basis according to past performance, ability to absorb additional funding effectively, and for an agreed programme of future activities, with proper regard to value for money. It is government policy to encourage direct inward investment to the UK because it contributes significantly to economic growth. Inward investment brings benefits both to the country as a whole and more specifically to the Assisted Areas.