§ Rev. Martin SmythTo ask the President of the Board of Trade what European regulations govern industries relocating within the European Community in receipt of European grants; and what domestic regulations govern such industries in respect of United Kingdom national grants.
§ Mr. SainsburyThere are no European Community or domestic regulations governing industries relocating within the Community, whether or not they are in receipt of Community or national funds. Relocation is a commercial decision for the company involved. The European Commission does, however, enforce maximum levels of grant available in different regions of the Community.
There are restrictions on the movement of firms which have received assistance in the United Kingdom. The contractual terms and conditions of regional selective assistance, for example, allow grant to be clawed back from firms which close down a project or reduce the scale of investment and/or jobs involved, within a stated period. This varies, but is normally within three years of completion of payment grant.