HC Deb 19 May 1982 vol 24 cc342-3
12. Sir William Elliott

asked the Secretary of State for the Environment if he will take steps to increase the levels of private investment in urban renewal by extending some of the advantages offered within the enterprise zones to inner city areas.

Mr. Giles Shaw

We are watching closely to see how effective the enterprise zone advantages prove to be. The results so far are encouraging but it is too soon for a definitive assessment. We shall not consider extending the advantages until that is available. In the meantime, we have taken a number of other initiatives to promote investment in the inner city, including my right hon. Friend's recent announcement of the urban development grant.

Sir William Elliott

Is my hon. Friend aware that the success so far of the enterprise zones, especially in North-East England, is very much appreciated? Will he nevertheless realise that existing firms in cities are fearful of the enormous trading advantage of firms coming into the zones? Will he do his best, in the operation of Government policy, to ensure that firms that are established and that have, through their enterprise, provided much employment, do not suffer unduly.

Mr. Shaw

I fully understand my hon. Friend's anxiety that the existence of enterprise zones, because of their advantages, may affect existing enterprises located outside them. I think my hon. Friend will agree that the enterprise zones are essentially catalysts, around which increasing economic activity can be provided, and that they are located in areas where such a catalyst should not be detrimental to generating economic activity. In fact, the reverse is the case.

Mr. Robert C. Brown

Will the Minister enlighten the House about how many existing businesses just outside the Tyneside enterprise zone have applied to move into the enterprise zone? Will he resist the blandishments of his hon. Friend the Member for Newcastle upon Tyne, North (Sir W. Elliott) and instead increase the money available for inner city partnership schemes?

Mr. Shaw

The hon. Gentleman will be aware that a number of initiatives announced by my right hon. Friend, including the urban development grant, will result in £70 million being available in 1983–84. I cannot answer the first part of the hon. Gentleman's question. I shall write to him on the matter.