HC Deb 10 June 1981 vol 6 cc400-1
17. Mr. Dover

asked the Secretary of State for the Environment if he is satisfied with the involvement of private enterprise in the inner city areas.

Mr. Heseltine

No. That is why I am seeking every opportunity to associate representatives of industry and commerce with those of my programmes which affect urban areas.

Mr. Dover

Will the Secretary of State pay tribute to the excellent work done by some banks and building societies in inner city areas? Will he publicise their efforts and encourage other private firms to come in?

Mr. Heseltine

I am grateful to my hon. Friend for making that point, because some exciting new initiatives are being pursued by such institutions. I should like to see such initiatives being taken on a larger scale. I am considering what I can do to publicise more widely the benefits that have come from a genuine partnership between the public and private sectors in funding new capital schemes.

Mr. Spearing

Does not the right hon. Gentleman agree that private enterprise is attracted to the controversial enterprise zones largely because the Exchequer intends to pay the rates? If the right hon. Gentleman wanted an experiment in planning, why did he not carry out the experiment without the Exchequer's subsidy?

Mr. Heseltine

I think that the hon. Member will realise that the enterprise zone package is a coherent package. He is right in saying that there is a benefit as a result of the rates subsidies which will be borne by the Exchequer, but new planning regimes are part and parcel of trying to give particular focus to those areas. They add up to a coherent package.

Mr. Bob Dunn

I welcome that answer from my right hon. Friend. Does he not agree that the inner city dweller can best be served if local authorities embark on a radical programme of privatisation of local authorities' services and functions? Is it not a shame that many local authorities have not followed the example of the borough of Southend?

Mr. Heseltine

I am told that there are considerable opportunities for privatisation of public services, but many people considering such options do not take account of the considerable and positive gain that flows from the private sector, having once become established, exploiting its skills on a much wider scale.