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Departmental Assistance

Volume 951: debated on Tuesday 6 June 1978

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asked the Secretary of State for Industry if he will categorise the various forms of selective financial assistance available to industry through his Department; and if he will show how much has been paid out under each scheme each year since 1974 (a) by industry and (b) by region.

The following tables show offers and payments of regional selective financial assistance under Section 7, and through sectoral industry schemes, the accelerated projects scheme and the selective investment scheme under Section 8 of the Industry Act 1972. Except for the accelerated projects and selective investment schemes, where information is provided up to 30th April 1978, the other information is drawn from available statistics and covering the period 1974–77. Payments are shown on a cumulative basis since the breakdown by calendar years could only be provided at a disproportionate cost.

SECTION 7: ASSISTANCE BY REGION/COUNTRY SINCE 1ST JANUARY 1974

Region/Country

Offersmillion)

Paymentsmillion)

1974

1975

1976

1977

Total

1974–77

Scotland16·428·721·118·084·246·2
Wales15·717·314·26·053·227·6
Northern6·210·914·118·149·325·9
North-West19·726·413·922·482·454·0
Yorkshire and Humberside6·73·99·34·624·517·6
East Midlands0·51·60·80·93·82·5
South-West1·90·54·52·99·83·6
Total67·189·377·972·9307·2177·4

Note: In addition about £95,000 has been offered in the West Midlands Region over the four-year period. Payments have totalled £91,000.

INDUSTRY ACT 1972
SFCTION 8: ASSISTANCE—SECTORAL INDUSTRY SCHEMES COMMENCED SINCE 1ST JANUARY 1974

Scheme

Offersmillion)

Paymentsmillion)

1974

1975

1976

1977

Total

1974–77

Machine Tool*3·38·011·31·7
Ferrous Foundry*21·741·162·88·1
Clothing*0·82·63·41·1
Poultry Meat*0·53·54·00·2
Paper and Board(a)1·25·46·61·5
Printing Machinery*1·81·80·2
Textile Machinery*0·50·5
Electronic Components(b)1·41·4
Non-Ferrous Foundry(c)2·62·60·1
Redmeat Slaughterhouse(d)2·52·5
Wool Textile 2*0·10·1
Total27·569·597·012·9

Notes: 1. Asterisk denotes scheme is closed to applications.

2. ( a) Scheme closes on 30th June 1978.

( b) Scheme closes on 31st July 1978.

( c) Scheme closes on 31st July 1978.

( d) Scheme closes on 30th November 1978.

SECTION 8: ASSISIANCE—SECTORAL INDUSTRY SCHEMES COMMENCED SINCE 1ST JANUARY 1974 BY REGION/COUNIRY

Region/Country

Offersmillion)

Payments £ million

1974

1975

1976

1977

Total

1974–77

Scotland3·94·68·51·5
Wales0·21·41·60·1
Northern1·86·48·20·1
North-West1·94·05·91·1
Yorkshire and Humberside4·611·315·92·8
East Midlands3·014·117·12·0
South-West2·05·67·60·9
West Midlands7·111·818·92·0
Eastern2·14·97·01·2
London and South-East0·95·46·31·2
Total27·569·597·012·9

INDUSTRY ACT 1972
SECTION 8: ASSISTANCE—ACCELERATED PROJECTS SCHEME—INDUSTRIAL SECTORS
£ million

Offers

Sector

1975 Assistance

1976 Assistance

Totals Assistance

Payments (Up to 30th April 1978)

Mining and Quarrying0·040·040·03
Food, Drink and Tobacco2·262·261·03
Coal and Petroleum Products20·2020·200·35
Chemicals and Allied Industries2·3722·78(b)25·154·73(b)
Metal Manufacture4·374·372·24
Mechanical Engineering4·9(a)10·6115·517·83(a)
Electrical Engineering0·193·133·321·48
Vehicles3·673·807·473·01
Metal Goods not specified elsewhere1·86(c)1·860·83(c)
Textiles0·800·800·35
Leather, Leather Goods and Fur0·090·09nil
Bricks, Pottery, Glass, Cement, etc.2·482·481·13
Timber, Furniture, etc.0·300·300·15
Other Manufacturing industries0·100·100·05
Construction0·070·070·03
Other0·110·110·06
Total11·1373·0084·1323·30

Notes: (1) Assistance is in the form of interest relief grants with the exception of the following loans:

( a) £4·9 million (paid in full); ( b) £450,000 (paid in full); ( c) £360,000 (£240,000 paid so far).

2. The scheme was open to applications from 15th April 1975 until 31st July 1976.

SECTION 8: ASSISTANCE—ACCELERATED PROJECTS SCHEME—BY REGION/COUNTRY
£ million

Region/Country

1975 Assistance

Offers 1976 Assistance

Total Assistance

Payments (Up to 30th April 1978)

Scotland2·102·101·11
Wales0·192·062·250·78
Northern3·10(b)3·101·30(b)
Yorkshire and Humberside0·2321·5721·800·22
East Midlands1·601·600·70
Eastern1·6215·38(c)17·003·20(c)
London and South-East0·522·062·580·90
South-West2·902·900·96
West Midlands8·508·503·70
North-West7·807·801·51
Other (more than one region)8·57(a)5·9314·508·92(a)
Total11·1373·0084·1323·30

Note: Loans included are as follows:

( a) £4·9 million (paid in full); ( b) £450,000 (paid in full); ( c) £360,000 (£240,000 paid so far).

INDUSTRY ACT 1972
SECTION 8: ASSISTANCE—SELECTIVE INVESTMENT SCHEME—INDUSTRIAL SECTORS
£ million

Sector

1977 Assistance

Offers 1978 Assistance (Up to 30th 30th April)

Total Assistance

Payments (Up to 30th April 1978)

Food, Drink and Tobacco0·560·581·140·02
Chemicals and Allied Industries5·000·175·170·30
Metal Manufacture0·120·050·17
Mechanical Engineering1·220·121·34
Electrical Engineering0·150·240·39
Vehicles1·790·502·29
Metal Goods not elsewhere specified0·580·200·78
Textiles0·150·240·39
Bricks, Pottery, Glass, Cement, etc.0·920·92
Paper, Printing and Publishing10·5010·50
Other Manufacturing industries0·251·051·30
Total20·324·0724·390·32

Note: The scheme opened for applications on 15th December 1976 and closes on 30th June 1978.

SECTION 8: ASSISTANCE—SELECTIVE INVESTMENT SCHEME—BY REGION/COUNTRY
£ million

Region/Country

Assistance

Offers 1978 (Up to 30th April) Assistance

Assistance

Payments (Up to 30th April 1978)

Scotland0·450·45
Wales0·750·75
Northern14·1114·110·10
Yorkshire and Humberside0·410·120·53
East Midlands0·480·651·13
Eastern0·750·371·120·20
London and South Eastern0·250·520·77
South-West1·720·302·02
West Midlands2·151·303·450·02
North-West0·060·06
Total20·324·0724·390·32

asked the Secretary of State for Industry if he will list all payments made or commitments entered into under Section 8 of the Industry Act 1972 in the year 1977 giving the dates relevant thereto.

I do not propose to list each of over a 1,000 projects for which offers or payments were made under Section 8. Details of each offer are published in "Trade and Industry", in accordance with arrangements announced on 31st July 1974, and progress reports on each scheme are contained in the annual reports on the Industry Act 1972. The following list shows the total amounts offered and paid under Section 8 schemes in 1977–78. In addition, £15·5 million was paid to Chrysler (UK) Limited under the agreement of 15th January 1976, and £0·5 million assistance was provided to Meriden Motorcycles Limited.

SchemeAmounts offered in 1977–78Amounts paid in 1977–78
million)million)
Clothing4·41·9
Electronic Components4·00·2
Ferrous Foundry45·87·0
Instrumentation and Automation1·6Nil
Machine Tools10·42·0
Non-Ferrous Foundry4·60·3
Paper and Board9·02·0
Poultrymeat3·90·4
Printing Machinery3·50·6
Redmeat Slaughterhouse3·20·2
Textile Machinery2·00·1
Wool Textile I0·22·9
Wool Textile II1·20·3
Accelerated ProjectsNil14·8
Selective Investment23·30·1
Offshore Supplies22·311·7
139·444·5

asked the Secretary of State for Industry if he proposes to attach conditions of compliance with any future policy on industrial democracy to offers of selective financial assistance under the Industry Act 1972.

asked the Secretary of State for Industry in what circumstances his Department is requiring undertakings to comply with future as yet undecided phases of pay policy from applicants for selective financial assistance under the Industry Act 1972.

My Department does not require undertakings to comply with future pay policy from applicants for selective financial assistance under the Industry Act 1972, but offer letters reserve the right to refuse payments if at the time for payment pay policy has not been complied with—as announced to the House in White Paper Cmnd. 6151.

asked the Secretary of State for Industry if he will give guidance to companies about the level of pay settlements in the autumn of the current year which might disqualify them from receiving payments of offers now being made of selective financial assistance under the Industry Act 1972.

Discussions about the possible shape of the next pay round are still at an early stage. It is too soon to say what the outcome of these discussions will be and thus how payments of selective financial assistance might be affected.