The Financial Assistance For Industry (Increase of Limit) Order 1996

Explanatory Note

(This note is not part of the Order)

Section 8 of the Industrial Development Act 1982 makes provision for the Secretary of State to provide financial assistance for industry.

Section 8(4) provides that the aggregate of—

(a) the sums paid by the Secretary of State under this section or section 8 of the Industry Act 1972 (c. 63), other than sums paid in respect of foreign currency guarantees, and

(b) the liabilities of the Secretary of State under any guarantees given by him under either of those sections (exclusive of any liability in respect of interest on a principal sum so guaranteed and of any liability under a foreign currency guarantee),

less repayments in respect of loans or guarantees (other than foreign currency guarantees) under either section shall not exceed the limit specified in section 8(5).

Section 8(5) provides that the limit shall be £1,900 million but the Secretary of State may, on not more than four occasions, by Order made with the consent of the Treasury increase or further increase that limit by a sum not exceeding £200 million.

This is the first occasion that the sum has been increased under section 8(5) of the Industrial Development Act 1982.

This Order increases the limit by £200 million to £2,100 million.