HC Deb 17 July 1963 vol 681 cc504-5
16. Mr. Manuel

asked the Secretary of State for Scotland what is the estimated cost to the local authorities concerned for the provision of roads, sewers, water and electricity and the other social services necessary, arising from the location of the pulp mill at Fort William.

Mr. Leburn

I would refer the hon. Member to the Answer my right hon. Friend gave the hon. Member for Edinburgh, East (Mr. Willis) on 1st May.

Mr. Manuel

That Answer did not reply to the Question I am now asking. Is the hon. Gentleman aware that the developments necessary consequent on the location of the pulp mill at Fort William will substantially increase the loan debt and rates of the local authorities affected by this development? Is he aware that if he wants development such as this to be a success in sparsely populated areas there will need to be central funds from the Exchequer before they can get the go-ahead for such development?

Mr. Leburn

A great deal of development is involved. I believe that the local authorities would be well able to bear this development.

Mr. Hamilton

Is the hon. Gentleman aware that the price of land in this part of the country as a result of this development being financed largely by Government has increased about tenfold?

Mr. Leburn

I should not like to pass judgment on that, but I shall be happy to make inquiries.

Mr. Manuel

Although the hon. Gentleman said that there will be Government grants available, as we recognise, in connection with education, main roads and so on, they are made to any local authority. Does he not realise that this is a substantial development over and above the programme hitherto thought about and that it will fall very heavily on these local authorities?

Mr. Leburn

Yes, but this is a development which the local authorities concerned are delighted to have in their area.

Mr. Ross

Would the Government be prepared to assist local authorities in respect of the burden of the capital cost in the same way as they have helped Wiggins Teape?

Mr. Leburn

There is an accepted way of giving grants to local authorities for developments of this kind. I would not like to go beyond that in this special case.