HC Deb 30 July 1980 vol 989 cc1494-7
6. Mr. Anthony Grant

asked the Secretary of State for the Environment to what extent programme and partnership authorities have attracted private investment for urban renewal in their areas.

16. Mr. Thompson

asked the Secretary of State for the Environment to what extent programme and partnership authorities have attracted private investment for urban renewal in their areas.

Mr. King

It is not possible to measure the amount of private investment in urban renewal deriving from the many activities of partnership and programme authorities. However, my right hon. Friend made it clear in his statement on inner cities policy last September that urban programme resources should help create the right conditions for private investors.

Mr. Grant

Does my right hon. Friend agree that a great deal more can be done? I appreciate that he cannot give orders, but will he do all that he can to encourage clearing banks, pension funds and insurance funds to change their attitude to investment in inner city and urban renewal?

Mr. King

We are giving the matter the highest priority. In discussions that I had with the previous chairman of the Development Commission about the rural areas, I encouraged the enlargement of private sector finance, which enabled the commission virtually to double the resources available at a time of considerable public expenditure restraint. On the urban side, the Post Office superannuation fund has purchased 100,000 sq ft of new factory development, which otherwise might have fallen on the urban programme for Beckton, and the work by Legal and General in Team Valley is helping with funds. There is also the work by Commercial Union on a feasibility study for the Manchester central station site. All those projects are receiving private sector funds, and the burden does not fall entirely on public sector resources.

Mr. Speaker

Order. I appeal for shorter questions and answers.

Mr. Thompson

Will my hon. Friend consider ways to guarantee loans from building societies and other financial institutions in the more difficult urban areas?

Mr. King

I apologise, Mr. Speaker, for the length of my previous answer, but there is a long list of private sector investment in these projects.

There are a number of possibilities, and my hon. Friend has mentioned one. I cannot give a commitment, but we are anxious to examine every possible way in which to stimulate private sector regeneration of urban areas.

Mr. Dixon

Will the hon. Gentleman accept that, when programme and partnership authorities were introduced by the previous Government, a promise was made that the matter would be kept under review? It he aware that South Tyneside metropolitan district council, which covers my constituency of Jarrow and the constituency of my hon. Friend the Member for South Shields (Dr. Clark) has an unemployment rate of 174 per cent. or 11,784 men, women and children out of work, and only 154 notified vacancies? Will he consider regrading South Tyneside from a programme to a partnership authority?

Mr. King

We have been considering reviewing authorities. We have protected the volume of resources available for the urban programme, but it is not possible at present vastly to expand them. It is important to sustain programmes in designated areas so that we can see what results are achievable and monitor progress. I hear what the hon. Gentleman says, but will he understand that if one dissipates it widely it will be difficult to judge the impact of the urban programme.

Mr. Steen

As one of the problems of inner cities is the refusal of banks, insurance companies and large financial institutions to invest in inner cities, will the Government consider setting up a register, not of derelict public land, but of the amount of money that the clearing banks are investing in the inner areas to show how much they are concerned about urban renewal?

Mr. King

We are having discussions with a number of major companies, institutions and clearing banks about the ways in which they can contribute to that important objective. I shall bear in mind my hon. Friend's point.

Mr. James A. Dunn

Is the Minister aware that in spite of the information that he has given today about companies and institutions moving towards investment and changing their attitudes, there is still concern about enterprise zones? Is he further aware that those bodies would like to know all the conditions attached to the establishment of the zones before making the final disposition of the allocation of their resources, to see what advantages would accrue if they sited themselves there?

Mr. King

My right hon. Friend the Prime Minister made an announcement yesterday, and my right hon. Friend the Secretary of State will answer a further question on the matter today. The information about enterprise zones and our proposals will therefore become much more widely available. We see them as a major step in encouraging enterprise in some of the most derelict areas of our industrial cities. We hope that they will make a useful contribution to regeneration.