Development Areas (Factories)

HC Deb 28 November 1944 vol 404 cc2377-9

20. Mr. A. Edwards

asked the President of the Board of Trade if in the development areas special advantages are being offered to local authorities to induce new industries; and if any local authority is able to offer special inducements in the way of rent-free factories.

Mr. Dalton

No such special advantages are being offered to local authorities, and I am not aware of any case where a local authority has the power to offer inducements by way of rent-free factories.

Mr. Edwards

Are not any special advantages to be offered to local authorities to develop their own arrangements?

Mr. Dalton

Not in the sense indicated by my hon. Friend.

21. Mr. A. Edwards

asked the President of the Board of Trade if the new Government factories in development areas are to be let at an economic rent; and, if not, is a subsidy to be available for local authorities or private manfacturers who invest their own money in factories.

Mr. Dalton

These factories, when they become available for civilian production, will normally be leased on the basis of 1939 values.

Mr. Edwards

Is the right hon. Gentleman not aware that on this basis, manufacturers who wish to go ahead with new building are at a great disadvantage unless the Government are going to extend the same facilities to those who build their own factories? What is the position of those who wish to build factories to rent, or those who wish to build their own factories, because, according to this arrangement, the 1939 rent is equal to a subsidy of 50 per cent. from the Government?

Mr. Dalton

This matter has been discussed in the House before. The question I am asked is about factories which now exist and which are being used by, or were built by, the Government in the development areas. It has been announced that these will, generally, be leased and not sold, and that the initial basis of the lease will be the 1939 value. At a later date, that can be readjusted in accordance with changes in conditions.

Mr. Shinwell

Do the Government propose to use any of these factories for civilian production under Government control, for example, for the purpose of producing goods required for building purposes?

Mr. Dalton

That is a wider question, but the answer is that we are certainly considering that in relation to housing and other programmes.

Mr. Edwards

May I put it to you, Mr. Speaker, that the Minister did not deal with the second part of the Question? He was asked whether the local authorities and private manufacturers are to have the same advantages that the Government arc offering in their own factories. Otherwise nobody can make a move, and everybody is at a standstill.

Mr. Dalton

No, Sir, I do not think everybody is at a standstill. When we get more building labour—and the essential problem here is the release of labour for building new factories—licences will be issued for new building in these and other areas, and particularly in these areas, and anybody who desires to build will be enabled to do so. I am dealing here with the question of what arrangements have been made for factories built or used by the Government for war purposes to be converted to civilian production and I have answered that.

Mr. Edwards

On a point of Order. I would put it to the Minister that the Question I have asked is perfectly clear—whether a subsidy is to be available to local authorities or private manufacturers—and the Minister's answer leaves it so that everybody is at a standstill, because they are going to have to pay twice as much for a factory and cannot possibly let it at 1939 rents.

Mr. Dalton

I should like to get my hon. Friend to see the point and I will try again. The factories referred to in the first part of his Question are to be let at 1939 values. That is the basis of the rent and there is no question that that may be regarded as a reasonable approach to an economic rent, having regard to the conditions in those areas. That being so, there will be no subsidy granted to local authorities or private manufacturers.

Mr. Edwards

I beg to give notice that I will raise this matter on the Adjournment.