§ Mr. Irvine
To ask the Secretary of State for Trade and Industry whether there are any changes to his Department's cash limits or running cost limits for 1989–90.
§ Mr. Ridley
Subject to parliamentary approval of the necessary Supplementary Estimates:
There will be a token increase of £1,000 on class V, vote 1 (regional and selective assistance, support for aerospace, shipbuilding, steel and vehicle manufacture) to introduce a new subhead to meet expenditure on a special payment of £31,790,000 to the International Tin Council. Extra provision of £23,123,000 is also being made for assistance to the shipbuilding industry. The special payment to the International Tin Council and the additional provision for assistance to the shipbuilding industry are offset by a higher than expected receipts and reduced demand for expenditure on regional development grants, regional selective assistance, selective assistance to industry, and support for the aerospace and steel industries.
The cash limit for class V, vote 3 (administration, regulation of domestic trade and industry and consumer protection) will be increased by £155,642,000 from £248,181,000 to £403,823,000. The increase covers provision of £156,000,000 for ex gratia payments to investors in Barlow Clowes Gilt Managers Ltd. and Barlow Clowes International Ltd., and associated expenses: the decision to make these payments was announced in the House on 19 December 1989.
Substantial recoveries are expected in future years and these will be credited to the Consolidated Fund. The increase is partially offset by transfers of £322,000 to the Central Statistical Office (class XIX, vote 18) in respect of staff and services recently transferred to the CSO; £24,000 to the Cabinet Office (class XX, vote 2) in respect of the transfer to that Department of the post of Chancellor of the Duchy of Lancaster; and £12,000 to the Department of the Environment (class X, vote 5) in respect of the transfer to that Department of responsibility for the Government's city action teams. Included in these transfers are provisions for running costs which result in the running cost limit for the Department being reduced by £221,000 from £305,098,000 to £304,877,000.
In addition to these changes, the cash limit for class V, vote 2 (support for industry) will be reduced by £72,500,000 from £570,837,000 to £498,337,000. This reflects reductions in requirements of £18.7 million for innovation, of £19.8 million for regional enterprise grants, and of £4 million for assistance for exceptional projects, in each case as a result of lower than expected demand, together with a reduction of £17 million for the consultancy initiatives as a result of lower costs per case and a slower than expected rate of completion of projects 88W than originally anticipated, a reduction of £6 million for education and training as a result of lower than expected levels of activity, and a reduction of £7 million in grant in aid provision for the English Industrial Estates Corporation in the light of greater than expected receipts.
The net effect of these changes will be charged to the reserve.