Orders of the Day — Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 12:00 am on 4 April 1963.

Alert me about debates like this

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale 12:00, 4 April 1963

Firms already in the development districts will qualify equally with new entrants. I should like to study the point about agriculture rather than give an "off-the-cuff" answer.

These new standard benefits, in common with the existing financial inducements of the Local Employment Act, will be linked with the general policy of the Act, that is, the projects concerned must create employment. In the case of plant and machinery, for example, the grant under the new Bill will not be available for simple replacement. We shall have to put a ceiling, as we do at present, on the total assistance available under the Act for individual projects where the cost to public funds is too high in relation to the number of jobs to be provided. But we shall ensure that, with the exception of projects which are obviously capital intensive, any ceiling that we put on an individual case will be high enough to accommodate these new standard benefits. In the majority of cases there will also be room for B.O.T.A.C. loans and grants available under Section 4 of the present Act.

As the Committee will remember, yesterday my right hon. Friend announced that industrial firms in development districts will be able to write off for tax purposes the cost of new fixed plant and machinery at the rate of their own choosing—free depreciation, he called it. This facility will be available for replacement and modernisation and, unlike the new standard grants under the Local Employment Act, will not be related to the provision of employment.