regional selective assistance
regional selective assistancesee REGIONAL POLICY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
regional selective assistancean instrument of REGIONAL POLICY used in Britain and the European Union as a means of encouraging new INVESTMENT in ASSISTED AREAS. Regional selective assistance in the form of cash grants is potentially available to all firms undertaking investments in the development and intermediate areas. Such aid, however, is discretionary - ‘selectivity’ requires that the investment project should have a good chance of paying its way, that assistance is vital for the project to go ahead (i.e. without the grant the project could not go ahead at all or only on a smaller scale) and that the project should contribute to both the regional and the national economy. A project grant is based on the fixed capital costs of a project and the number of jobs it is expected to create or safeguard. The amount of grant is negotiated for the minimum necessary for the project to go ahead on the basis proposed, up to a ceiling set by the European Commission of 30% of the project's cost. This is obviously open to manipulation but has been useful in enabling the authorities to attract foreign firms into the UK, for example, the location of the Nissan car assembly plant in Washington, Tyne and Wear. See also ENTERPRISE GRANT SCHEME.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005