Subject to subsection (2) below, the Secretary of State may, with the approval of the Treasury, give financial assistance to any person F1. . . engaged in an activity in Wales which the Secretary of State considers will contribute to the social development of Wales or any part of Wales.

The Secretary of State shall not give financial assistance under this section to a person who carries on or intends to carry on F2a business; and in this subsection “business" has the same meaning as in the Welsh Development Agency Act 1975.

The financial assistance may be by way of grant, loan or the giving of guarantees or by any combination of those means.

The conditions which may be attached to the giving of financial assistance under this section include conditions for repayment of the whole or any part of a grant in any circumstances.

Any sums repaid to the Secretary of State in pursuance of this section shall be paid by him into the Consolidated Fund.