HC Deb 17 November 1997 vol 301 cc49-50W
Mr. Redwood

To ask the President of the Board of Trade what is the United Kingdom maximum limit on the amount of grant that can be offered in an assisted area or development area. [15761]

Mrs. Beckett

The maximum grant ceiling in the UK is 75 per cent. of the discounted fixed capital costs for qualifying projects in areas designated under Article 92(3)a of the Treaty of the EC. This ceiling is currently applicable to the whole of Northern Ireland. The maximum grant in Development Areas under Article 92(3)c is 30 per cent.

Mr. Redwood

To ask the President of the Board of Trade what mechanisms have been created to avoid competitive bidding between United Kingdom regions to attract new investment. [15762]

Mrs. Beckett

All three operating departments have subscribed to internal rules designed to avoid bidding up. There are also procedures for central handling of major cases where appropriate—for example, if more than one site is being considered.

Mr. Redwood

To ask the President of the Board of Trade in what circumstances her Department(a) sees the papers, (b) influences decisions and (c) has a veto on inward investment packages offered by Wales and Scotland. [15820]

Mrs. Beckett

The territorial departments consult my Department on a range of matters, for example the market conditions in an industry, when relevant. The territorial departments will also consult my Department when more than one location is being considered because there are arrangements for a co-ordinating approach to dealing with the prospective inward investor. Decisions on inward investment packages offered by Scotland and Wales are matters for my right hon. Friends the Secretary of State for Scotland and the Secretary of State for Wales.

Mr. Redwood

To ask the President of the Board of Trade what guidelines she has issued to bring investment packages offered by Scotland and Wales into line with England. [15860]

Mrs. Beckett

[holding answer 13 November 1997]Regional Selective Assistance scheme grants operate to common guidelines applied across Great Britain. In Northern Ireland, grants are available under the Selective Financial Assistance scheme, which operates on similar principles. I am discussing with my colleagues how best to ensure common UK criteria when dealing with the full packages of support offered to inward investors.

Mr. Redwood

To ask the President of the Board of Trade if the Secretary of State for Scotland has to submit investment packages to her Department before he is able to confirm them. [15884]

Mrs. Beckett

[holding answer 13 November 1997]No.

Mr. Redwood

To ask the President of the Board of Trade what criteria she will apply to determine the size of grants for regional inward investment. [15882]

Mrs. Beckett

[holding answer 13 November 1997]Applications for Regional Selective Assistance (RSA) grant are received from both domestic and foreign companies of all sizes, and are assessed against the same strict criteria. Eligible projects must create new or safeguard existing employment in the Assisted Area, be viable and contribute to both the regional and national economy. The project must be additional; that it would not go ahead in the assisted area unless RSA grant is forthcoming. The amount of grant awarded is always judged to be the minimum necessary for the project to go ahead, and is related to the fixed capital costs of a project and on the number of jobs expected to be created or safeguarded.

Mr. Redwood

To ask the President of the Board of Trade if the Invest in Britain Bureau has the power to vet regional development body grants and investment packages. [15881]

Mrs. Beckett

[holding answer 13 November 1997]The Invest in Britain Bureau, which is jointly managed by the DTI and the FCO markets the UK abroad as an investment location and co-ordinates a regional delivery infrastructure, providing grant to 10 English Regional Development Organisations for an agreed programme of inward investment promotion activities. It does not have the power to vet Regional Selective Assistance packages since that is not its role but it works closely with Regional Assistance Directorate in the DTI, who are responsible for RSA policy.