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Regional Aid (Jobs)

Volume 78: debated on Wednesday 1 May 1985

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asked the Secretary of State for Trade and Industry how many jobs have been created directly as a result of regional development grants and regional selective financial assistance in each region of the United Kingdom in the last 12 months; and if he will estimate the number of jobs resulting indirectly.

There are no estimates available for the number of jobs created as a result of regional development grants alone over the last 12 months. Estimates are, however, available of the employment expected to be created or safeguarded by projects receiving offers of assistance under section 7 of the Industrial Development Act 1982 (Regional Selective Assistance) in the regions and counties of Great Britain and projects receiving offers of selective assistance in Northern Ireland. These estimates are shown in the table below. We have no evidence about the number of jobs resulting indirectly, but our normal assumption is that for every 100 jobs created in manufacturing in a region, there will be another 40 jobs created in other industries within the region.

Employment Expected to be Created or Safeguarded by Projects in Receipt of Offers of Section 7 Assistance (Great Britain) or Selective Financial Assistance (Northern Ireland) During 1984–85 by Standard Region and County

Number

North12,889
North West5,204
Yorkshire and Humberside2,655
East Midlands1,700
West Midlands259
South West2,195
Scotland24,213
Wales17,080
Northern Ireland15,862

asked the Secretary of State for Trade and Industry what is the cost-per-job limit set on projects financed by regional development grants and regional selective financial assistance.

Under the new regional development grant scheme the grant payable in respect of the carrying out of an approved project is the higher of 15 per cent. of RDG eligible capital expenditure, subject to a grant-per-job limit of £10,000 for each net new job created or £3,000 for each such job. The grant-per-job limit does not apply to the first £500,000 of RDG eligible expenditure on a project which is carried out by an undertaking which, together with any associated undertaking, employs 200 or fewer people. In the case of manufacturing projects, grant calculated on the basis of jobs created may not, because of a requirement of the European Community, exceed 40 per cent. of the total capital expenditure involved in the project.Regional selective assistance is negotiated on the basis of the minimum grant necessary to enable a project to go ahead. Internal negotiating guidance is not revealed publicly.