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Regional Aid

Volume 111: debated on Wednesday 25 February 1987

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23.

asked the Secretary of State for Trade and Industry what proportion of his Department's expenditure on regional aid to industry in the financial year 1985–86 benefited industry in Wales.

Expenditure on regional aid to industry in Wales is almost entirely undertaken by the Welsh Office. In 1985–86 less than 1 per cent. of my Department's expenditure on regional development grants and regional selective assistance was paid to industry in Wales. Taking account of Welsh Office expenditure, however, the amount spent in Wales in 1985–86 under these headings represented some 22 per cent. of the total for Great Britain.

40.

asked the Secretary of State for Trade and Industry what was the total expenditure of his Department on regional aid to industry and selective aid to industry under section 8 of the Industry Act in the financial year 1985–86; and what were the corresponding figures for 1979–80.

Expenditure by the Department of Trade and Industry on regional aid to industry in 1985–86 was £225·3 million. This figure includes regional development grants (RDGs) and project and training grants under section 7 of the Industrial Development Act 1982. Expenditure on selective aid to industry under section 8 of the Industrial Development Act in 1985–86 was £66·6 million. The corresponding figures for 1979–80 were £391·4 million for regional aid and £75·6 million for section 8. However, it should be noted that the 1979–80 figures for regional aid include expenditure on RDGs in Scotland and Wales, responsibility for which was transferred from the DTI to the Scottish and Welsh Offices in November 1984. Expenditure on regional aid in England alone in 1979–80 was £255·2 million and in 1985–86 is estimated at £221 million.

41.

asked the Secretary of State for Trade and Industry how many jobs have been created or preserved through regional aid in the northern region since 1983.

Approximately 9,800 jobs have been created in the Northern region — consisting of the counties of Cumbria, Cleveland, Durham, Northumberland and the county area of Tyne and Wear—in projects for which payments of new-style regional development grants have been made from the beginning of the scheme in November 1984 to the end of 1986; 28,600 jobs were expected to be created and 14,800 jobs preserved as a result of offers of regional selective assistance in the calendar years 1983 to 1986 inclusive. No estimate can be made of the effect of employment of payments of old-style regional development grants in this period.

72.

asked the Secretary of State for Trade and Industry what is his estimate of the change in real terms in expenditure on regional industrial assistance since 1979.

Figures for calendar years ae not readily available, but between the financial years 1979–80 and 1985–86 expenditure in real terms on regional industrial assistance fell by £262·4 million in 1985–86 prices.

asked the Secretary of State for Trade and Industry if he will list the changes which have been made in the regulations regarding his Department's expenditure on regional aid to industry since 1979.

asked the Secretary of State for Trade and Industry if he will publish information on central Government expenditure on the regional grant

(£ Million)
Area and Assisted Area Status1978–791979–801980–811981–821982–831983–841984–851985–86
Northern
SDA51·649·955·455·854·657·354·034·2
DA83·672·462·188·072·644·035·023·9
IANilNilNilNilNilNilNilNil
Total135·2122·4117·5143·9127·2101·389·058·1
North-West
SDA48·646·082·2107·086·374·772·651·9
DA0·14·813·27·37·37·04·6
IA15·612·718·823·23·71·00·40·1
Total64·358·7105·7143·497·383·079·956·5
Yorkshire and Humberside
SDANilNilNilNilNilNilNilNil
DA14·39·919·731·133·923·326·718·8
IA15·811·619·016·02·50·30·1Nil
Total30·221·538·747·136·423·526·818·8
East Midlands
SDANilNilNilNilNilNilNilNil
DANilNil0·33·17·98·23·82·8
IA2·32·42·94·00·90·1
Total2·32·43·27·28·88·23·82·8
West Midlands
SDANilNilNilNilNilNilNilNil
DANilNilNilNilNilNilNilNil
IA0·10·10·1NilNilNil
Total0·10·10·1NilNilNil
South West
SDANil0·72·02·11·61·61·3
DA5·34·27·17·88·96·27·96·4
IA0·70·80·80·5NilNilNil
Total6·05·08·510·311·07·89·57·7
Scotland
SDA54·536·563·788·9107·671·174·871·4
DA52·332·848·751·8179·071·934·124·2
IA0·50·90·92·00·8NilNil
Total107·370·2113·3142·7287·3143·0109·095·6
Wales
SDA16·210·221·548·260·839·060·955·2
DA52·739·479·372·660·633·231·825·1
IA2·51·12·61·401NilNilNil
Total71·550·7103·5122·2121·572·192·780·3
Great Britain Total
SDA170·9142·7223·5301·9311·3243·7263·9213·9
DA208·4158·7222·0267·7370·2193·9146·3105·8

development, distinguishing between different levels of assistance and aggregating the information to the standard United Kingdom regions, for all years since 1978–79 inclusive.

[pursuant to his reply, 24 February 1987]: The question has been interpreted to refer to payments of regional development grants broken down ley assisted area status and by standard economic region. Payments of old-style RDGs were as follows:

Area and Assisted Area Status

1978–79

1979–80

1980–81

1981–82

1982–83

1983–84

1984–85

1985–86

IA37·529·445·047·28·11·30·50·1
Grand Total416·9330·8490·5616·8689·6438·9410·6319·8

Payments of new-style RDGs, which were introduced in November 1984, were as follows:

£ Million

Area

1984–85

1985–86

Northern0·19·2
North West5·6
Yorkshire & Humberside5·4
East Midlands1·6
South West0·9
Scotland0·211·9
Wales4·1
TOTALS0·338·6

Notes:

  • (1) Key to assisted area status:
    • SDA—Special development area
    • DA —Development area
    • IA —Intermediate area.
  • New-style RDGs are available in development areas only. (special development areas were abolished in November 1984.)
  • (2) Totals do not always equal component parts due to rounding.
  • (3) —indicates an amount of less than £50,000.
  • (4) Northern Ireland has its own schemes of assistance which are the responsibility of the Secretary of State for Northern Ireland.