HC Deb 12 December 1979 vol 975 cc1279-81
4. Mr. Newens

asked the Secretary of State for the Environment what is the value of the sales of commercial and industrial assets owned by new town development corporations and the New Towns Commission to date.

17. Mr. Dormand

asked the Secretary of State for the Environment if he will make a statement on developments on the sale of commercial property in new towns.

The Secretary of State for the Environment (Mr. Michael Heseltine)

In the present financial year industrial and commercial assets worth almost £4 million have so far been sold. The sale of assets worth another £24.5 million has been agreed but not finalised, and other assets valued at about £43 million are on the market.

Mr. Newens

Is the right hon. Gentleman aware that many tenants of industrial properties, particularly small business men, whom his party promised to help, are up in arms against his policy? Does he recognise that small business men are not permitted to buy individual units when they form part of an estate, but are told that the estate must be sold as one unit? Is he also aware that they are not allowed to buy as sitting tenants, but have to put in a bid, which means that their property may be bought over their heads? Will the right hon. Gentleman do something about those problems or recognise that the Government are striking a blow at many small business men who have worked to build up their businesses for many years in my constituency and others like it?

Mr. Heseltine

I welcome the hon. Gentleman's support for the small industrial community. I have ensured that guidelines are available in the disposal programme so that the small business owner gets every reasonable chance, subject to considerations of national financial concern, to buy his own property.

Mr. Newens

The right hon. Gentleman is selling them out.

Mr. Dormand

Is the Secretary of State aware of the deep concern in the new town in my constituency and in other new towns about the policy of selling commercial property? Is he further aware that the profitable enterprises will be snapped up and the remainder will be left to be added to the burden of the public purse? Does he agree that the principles of the private Stevenage Development Authority Bill, which is before the House, are of major importance and worthy of the Government's support?

Mr. Heseltine

The Stevenage Bill is in conflict with Government policy and we shall oppose it on the Floor of the House. The hon. Gentleman knows that we are determined to widen ownership in this country and our policy is in line with what we were elected to achieve.

Mr. Michael Morris

Will my right hon. Friend note that, contrary to the remarks of Labour Members, many of us who represent new towns believe that his proposals are welcome to sitting tenants? Will he give us a categorical assurance that he will make every effort to throw out the Stevenage Bill, which is a weasel designed to transfer resources to district councils?

Mr. Heseltine

Given the help of my right hon. and hon. Friends, I am optimistic about the last part of the question. I have no doubt that the announcement that we intend to offer for sale properties in new towns has been widely welcomed by those who will now have an opportunity to own their properties direct.

Mr. Guy Barnett

Does not the right hon. Gentleman recognise that there are a number of local authorities that have the best reasons for wanting to purchase some of the assets currently in the ownership of new town development corporations or the New Towns Commission, because without being able to do so, and particularly without being able to gain the freehold on town centres, it will be difficult, if not impossible, for them to carry out the sort of redevelopment work that they may need to do in future? That is possible in areas that have not been predominantly under the ownership of new towns.

Mr. Heseltine

Different powers are needed for the purpose that the hon. Gentleman has in mind and it is our intention to ensure that those reasonable powers are available to local atuhorities.

Mr. Hattersley

What advice has the Secretary of State received from the new town chairmen about the advantages to the community of selling the assets leasehold rather than freehold? How and when does he propose to respond to that advice?

Mr. Heseltine

We have discussed the matter. The arguments for selling leasehold or freehold have been well rehearsed and are known to all hon. Members. The Government's view is that we should sell freehold wherever possible.