HC Deb 26 February 1957 vol 565 cc1015-7
10. Mr. Chetwynd

asked the President of the Board of Trade how many Government financed factories in the North-East Development Area have been sold; what was the original capital cost of these factories; and how much has been received as a result of the sales.

Sir D. Eccles

Two, Sir. It is not the general practice to disclose details of sales, but I can say that no loss to the Exchequer was involved.

Mr. Chetwynd

Can the President say whether this sale of factories in Development Areas represents a departure in policy, and is it to be widely extended or strictly confined to individual sites?

Sir D. Eccles

I do not think it is a departure in policy. It seems to me to be a rather sensible thing to do, because if a manufacturer buys his factory, the position of the industry in the neighbourhood is likely to be stabilised.

Mr. Willey

Can the right hon. Gentleman say whether this will be allowed generally, or will it be considered by his Department only in special circumstances?

Sir D. Eccles

I should certainly want to look at each case very carefully on its merits.

11. Mr. Chetwynd

asked the President of the Board of Trade whether he will relax the restrictions on the building of extensions to Government-owned factories in Development Areas with particular reference to factories on the North Tees Estate, Stockton-on-Tees.

Sir D. Eccles

No, Sir; it is still necessary to exercise the strictest economy in Government expenditure, and the policy in respect of the building of factories and extensions in the Development Areas remains as explained by my right hon. and learned Friend in answer to a Question by the right hon. Member for Huyton (Mr. H. Wilson), on 5th June, 1956.

Mr. Chetwynd

Is it not somewhat unfair that private factories in Development Areas can go ahead with extensions, whereas firms in the trading estates are debarred from doing so? Is the President not aware that this is causing considerable disquiet, which may result in certain factories leaving the Development Areas in the near future?

Sir D. Eccles

Firms in the development estates are not debarred from doing so, if they will do it themselves. As a matter of fact, there are two applications for extensions from tenants on the North Tees Estate, and one of these firms is considering building for itself.

Mr. Jay

But surely, even in their economy campaigns, the Government are capable of distinguishing between capital development and current expenditure?

Sir D. Eccles

Yes.

Mr. T. Williams

Might I ask the President how he squares his first reply with the fact that large Government building costing millions of pounds is now being undertaken in Manchester, for which there is no necessity at all?

Sir D. Eccles

I should have to see when these Government buildings in Manchester were started and when authorised.