HC Deb 07 December 1981 vol 14 cc570-1
9. Mr. Anthony Grant

asked the Secretary of State for Industry what was the level of Government grant to the English Industrial Estates Corporation in each of the last three years.

Mr. Norman Lamont

It was £29.7 million, £32–7 million and £37.4 million in 1978–79, 1979–80 and 1980–81, respectively.

Mr. Grant

I appreciate the work that the English Industrial Estates Corporation has done over the years, but have not the majority of its developments been in areas which could have been tackled by private enterprise? Would it not have been better to concentrate the substantial sums involved on inner city problem areas?

Mr. Lamont

My hon. Friend is not quite right. The English Industrial Estates Corporation is an arm of regional policy. It has been building factories in areas where the private sector has not been willing to go. My hon. Friend has a point about inner city areas. The corporation has been building smaller units. That is the emphasis under this Government. I hope that meets my hon. Friend's point.

Mr. Adley

Will my hon. Friend consider the related question, that manufacturing industries might wish to lease an existing building and use resources either in their possession or borrowed for their manufacturing process? Does he recognise that in such cases it is possible to retain many useful factory buildings in towns and cities? Can he give some hope to people, especially in my constituency? He may know the case that I have in mind.

Mr. Lamont

I do not recall the case mentioned by my hon. Friend. However, what he said is happening a great deal and should be encouraged. I shall find out about the case my hon. Friend has in mind and consider it.

Mr. Wrigglesworth

Is the Minister aware that the English Industrial Estates Corporation has made a major contribution to the development and growth of factory premises in the Northern region? Will he therefore ignore plans for turning that corporation over to the private sector in the way that has been suggested this afternoon? Further, will he try to ensure that the English Industrial Estates Corporation does not operate in such a way as to stop many firms taking the premises with which they are provided because of bureaucracy and unwillingness to provide freehold premises in many instances?

Mr. Lamont

I agree with the point made by the hon. Gentleman. The English Industrial Estates Corporation has built many much needed factories under its regionl policy. I do not believe that incentives would work without the factories being made available. We have put the English Industrial Estates Corporation on a commercial basis. It is now required to make a commercial return. Encouraged by us, it has also worked more and more with the private sector, pension funds and institutions. That must be the right basis on which to proceed.