§ 3. Mr. Hoosonasked the Secretary of State for Wales how many Welsh local authorities have notified his Department that they are interested in exploring the possibility of enterprise zones within their areas.
§ Mr. Nicholas EdwardsTwo, apart from Swansea city council and West Glamorgan county council.
§ Mr. HoosonWhile I realise that it will take time for the success of enterprise zones to be evaluated, may I ask my right hon Friend to ensure that other possible sites are being identified for extension of this policy?
§ Mr. EdwardsAs my hon. Friend knows, this is an experiment. We have suggested one initial site. We are now consulting the local authorities, the Welsh Development Agency and other public bodies about possible alternative sites, and we shall consider carefully any representations that are made to us.
§ Mr. AndersonOn the basis of the current discussions with the Swansea city council, when does the Secretary of State expect the proposed enterprise zone to come into effect? Will he indicate any possible changes in the guidelines, and will there be an opportunity to discuss those guidelines in the House?
§ Mr. EdwardsWe hope to complete the process of consultation by the time that the House rises for the Summer Recess. Subject to the legislation going through, we hope that the enterprise zones will be in existence by the end of the year. I note that the hon. Gentleman has written to me suggesting some changes in boundaries if the Swansea valley site is selected. I am encouraged by the hon. 5 Gentleman's suggestion that the area might be extended. That suggests that perhaps he and others see virtues in this experiment.
§ Sir Raymond GowerAs special measures will be taken in areas where there have been steel closures or the scaling down of activity and as there will be this special experiment in this enterprise zone, and possibly in another enterprise zone, will that not place some burden on agencies, such as the Welsh Development Agency, and possibly on the other parts of Wales which are in neither the steel areas nor the enterprise zone? Will he keep a watch on this aspect, because it could easily be overlooked?
§ Mr. EdwardsThe Welsh Development Agency is not directly responsible for the management of the enterprise zone, though it will be carrying out some land clearance and site preparation in the area if the Swansea valley site is chosen.
I am aware of the additional burdens placed on the agency and I have authorised the recruitment of additional staff for the agency, which tells me that it has the resources to take the action that it thinks is necessary at present.
§ Mr. Alec JonesIf one or more of these enterprise zones is established in Wales, where will the public expenditure to finance them come from? Will it be additional money to the Secretary of State's budget or will it mean cuts in other items in that budget? If the latter is the case, some of the already poor areas in Wales will have to finance the steel closure areas.
§ Mr. EdwardsWe made it absolutely clear that, as far as the 100 per cent. rate relief is concerned, the local authorities will not have to meet that cost. I assure the right hon. Gentleman that it is not coming from other parts of my budget.