United Kingdom Statutory Instruments

(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 her 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 fourth occasion that the sum has been increased under section 8(5) of the Industrial Development Act 1982. The limit was first increased under section 8(5) by the Financial Assistance For Industry (Increase of Limit) Order 1996 (S.I. 1996/569) by £200 million to £2,100 million with effect from 29 February 1996. The limit was further increased under section 8(5) by the Financial Assistance For Industry (Increase of Limit) Order 2000 (S.I. 2000/995) by £200 million to £2,300 million with effect from 6 April 2000. The limit was increased for a third time under section 8(5) by the Financial Assistance For Industry (Increase of Limit) Order 2002 (S.I. 2002/151) by £200 million to £2,500 million with effect from 29 January 2002.

This Order increases the limit by £200 million to £2,700 million.