Paragraph 4 clarifies the extent to which the Scottish Parliament can legislate about financial assistance to industry.
Paragraph 4(1) provides that the giving of financial assistance to commercial activities is not reserved where it is for the purpose of promoting or sustaining economic development or employment.  This would include provision of a general nature which permits assistance to industries whose regulation is a reserved matter.
However, provision is made by paragraph 4(2) for certain exceptions.  These are as follows:
Paragraph 4(2)(c) clarifies that paragraph 4(1) does not prejudice the non-reservation of specific types of financial assistance to industry in Sections C11(19), E2 and E3 of Part II of Schedule 5, such as financial assistance for certain types of rail and shipping services or the provision of certain services at public post offices.
Paragraph 4(3) clarifies that paragraph 4(1) does not affect the question whether any matter other than financial assistance to which it applies is reserved..
The provisions in Schedule 5 relating to financial assistance should be read in conjunction with section 56.  This provides for a number of “devolved” functions relating to the giving of specific types of financial assistance to be shared powers.  This means that a UK Minister can also exercise those listed functions in or as regards Scotland.
TABLE OF RESERVED MATTERS Detail of Provisions Paragraph 4: Financial Assistance to Industry