HC Deb 09 June 1971 vol 818 cc1022-3
11. Mr. Blaker

asked the Secretary of State for the Environment what consideration he has given to the Report, Office Rents in the City of London and their Effect on Invisible Earnings, produced by the Committee on Invisible Exports, a copy of which is in his possession; and if he will make a statement.

The Secretary of State for the Environment (Mr. Peter Walker)

I am grateful to the Chairman of the Committee, Sir Cyril Kleinwort, for a copy of the study of office rents in the City of London done for his Committee by the Economists' Advisory Group. It will be of great value in considering what further modifications to the office control might be desirable in the future.

Mr. Blaker

Is my right hon. Friend aware that the Committee takes the view that on present trends business is likely to be driven from London to other countries because of high rents in the City of London and the shortage of office accommodation, thus imperilling the growth of our invisible earnings? Is he giving consideration to the suggestion that the system of office development permits should be abolished.

Mr. Walker

The O.D.P. system is important for the development of the whole of the South-East. Although there is some evidence that rents have increased substantially in the City due to the shortage of office space, a substantial increase in the granting of O.D.Ps. has been allowed in recent years, in addition to which many firms have moved out of the City into other areas.

Mr. Fernyhough

Having regard to the social problems which any additional employment in Central London inevitably brings and the lack of office employment elsewhere, particularly in the northern development area, will the right hon. Gentleman be very lukewarm towards any suggestion to extend office development in London until a much more formidable attack has been made on the unemployment problem in the development areas?

Mr. Walker

The right hon. Gentleman will be aware that the O.D.P. system has not, alas, had the favourable effect that was hoped for it in moving offices to the North. However, as I said, there has been a substantial movement in recent years. The O.D.P. system is, however, an important instrument of planning in the South-East. Equally, the right hon. Gentleman is right to draw the attention of the House to some of the social problems which result from the concentration of too much office development in London.