Enterprise Zones

HC Deb 28 April 1980 vol 983 cc957-9

15. Mr. Adley

asked the Secretary of State for Industry what initiatives he intends to take to attract industry to the enerprise zones.

Mr. Michael Marshall

The Government announced on 26 March a range of measures which we propose to apply in enterprise zones and which we believe will encourage economic activity. The measures include 100 per cent. capital allowances for industrial and commercial building; the abolition of general rates for industrial and commercial property; and the simplification of planning procedures. Details are available in the Library of the House.

Mr. Adley

Are not local authorities queueing up to take advantage of this adventurous and exciting opportunity created by the Government's positive intervention through the taxation system? Does my hon. Friend agree that it is essential, once the local authorities concerned have been designated, that industry should take advantage of the opportunities so presented? What steps is my hon. Friend taking, and what steps will he take, to make sure that big and small companies are made aware of those opportunities?

Mr. Marshall

The scheme has been well received and the indications are that industry is taking a great interest in the matter. My hon. Friend's question has helped to further that process. The consultations that are taking place with local authorities will help to continue the process of alerting industry.

Mr. James A. Dunn

Will the Government compensate local authorities for the loss of rates revenue?

Mr. Marshall

Yes, Sir.

Mr. Lee

Will my hon. Friend comment on early-day motion 590, in my name and those of a number of my hon. Friends, which seeks to request that the clearing banks provide finance for firms in enterprise zones on attractive terms to support the boldness and initiative shown by the Government in the creation of such zones?

Mr. Marshall

I appreciate a number of the sentiments contained in the motion, and I am sure that the banks concerned will note my hon. Friend's suggestion.

Mr. Heffer

Has the Minister read the original proposals for this idea by Peter Hall? Does he agree that they were weird ideas, and may we have an assurance that if the Government are going into these strange, mini-Hong Kong schemes, they will not pursue the proposals that Peter Hall put forward, even though Mr. Hall was once a member of the Fabian Society?

Mr. Marshall

As the hon. Gentleman admits, the source of these suggestions is not unknown to him. I think that I detect on the Opposition Benches a growing reservation of positions as hon. Members become aware that this might become a popular development.

Mr. Stevens

Will my hon. Friend consult my right hon. Friend the Secretary of State for the Environment to determine whether, under the derelict site procedures, we could attract into metropolitan areas which might also be suitable for enterprise zone grants from the European Community regional fund?

Mr. Marshall

I shall certainly ensure that that interesting and helpful contribution is made known to my right hon. Friend.

Mr. Les Huckfield

Can the Minister not understand that the Government's continuing to advance the view that some kind of regional Hong Kong sweat shops can be a genuine solution to a deindustrialised economy is starting to sound like a sick joke? When will he come clean on the myth which he is trying to establish and confirm that there is no evidence on either side of the Atlantic that the net number of jobs created by small firms can in any way replace the much larger number of jobs lost by the closure of big firms?

Mr. Marshall

The hon. Gentleman will always produce a carping, green-eyed view on any new initiative that he has not put forward. He is, typically, trying to talk in terms of sweat shops, but there are substantial safeguards about environmental pollution and other matters. The hon. Gentleman should judge this proposal as it develops, as I believe the whole House wishes to do.