§ Sir John StanleyTo ask the Secretary of State for Trade and Industry whether he has any plans to offer financial support for investment in newspaper recycling at Aylesford, Kent.
§ Mr. LilleyHaving consulted my right hon. Friend the Secretary of State for the Environment, I decided to consider an application from the Swedish paper-making company, SCA, for a grant under the assistance to exceptional projects facility. I took that decision primarily because of the significant environmental benefits which the proposed new mill, at Aylesford in Kent, would provide.
After thorough appraisal, we propose to offer a £20 million grant to the company to encourage it to invest £260 million in a newspaper recycling plant at Aylesford. Our proposal will require the approval of the House and the agreement of the European Commission which has been told about the project.
This investment will quadruple the amount of newsprint currently produced at Aylesford from 100 per cent. recycled fibre. The plant will consume 430,000 tonnes of waste paper a year, much of it from household waste paper. This will make a vital contribution to the achievement of the Government's recycling targets.
The Aylesford project would be the first to produce this volume of newsprint from 100 per cent. recycled waste and it will have the immediate environmental benefit of reducing the need for landfill.
Section 8(8) of the Industrial Development Act 1982, requires that the assistance proposed be authorised by a resolution of this House. The resolution will offer an opportunity to give more details about the project and to debate its merits.