Incentives up for regional development

Press, Volume CXIV, Issue 33665, 15 October 1974, Page 3

Incentives up for regional development

GXew Zealand Press Association) WELLINGTON, October 14. The Cabinet has approved the extension of incentives under the regional development programme, the Under-Secretary for Trade and Industry (Mr MacDonell) has announced.

The definition of quali-t fying plant will be extended to include ap- ; propriate mobile, ancil-, lary and other equipment for the purpose of assessing the level of suspensory loan assistance. A selective grants scheme' wil! be introduced for small projects in areas where development Was been difficult to promote, providing for up to 50 per cent of investment expenditure on | qualifying plant and build-1 ings, up to a maximum! grant of $lO,OOO. The suspensory loan i scheme will be extended to include the cost of buildings' in appropriate cases. Urgent consideration will j be given to the provision of an additional s!om to the! Development Finance Cor-j poration as the basis for a selective scheme to provide, mortgage finance for worth-j while regional development projects where such finance! is not available from normal | sources. On agreement between the Ministers of Finance and Trade and Industry, regional development assistance will be made available for appropriate projects outside the manufacturing and processsectors when not covered by the votes of other departments. Mr MacDonell also an-j nounced that the Cabinet! has delegated authority to, approve regional devel-l opment assistance for pro-|

tjects clearly within policy as follows: To the Ministers of Finance and Trade and Industry, 1 jointly — assistance not, exceeding $50,000. . I To the Secretaries to the. Treasury and of Trade : and Industry jointly —i assistance not exceeding $30,000. To the Secretary of Trade and Industry — assistance not exceeding $5OOO.