§ 5. Mr. Lennox-Boydasked the Secretary of State for Industry what is the average cost per square foot of constructing small advance factory units.
§ The Under-Secretary of State for Industry (Mr. John MacGregor)I regret that I have information only for the English Industrial Estates Corporation, which builds factories and workshops for the Government in assisted areas of England. Its average cost per square foot for factories under 2,500 sq ft is £18.20, including cost of land and site preparation.
§ Mr. Lennox-BoydWill my hon. Friend confirm that commercial rents are charged for such premises to give a reasonable return and that that has had the beneficial effect of encouraging a great deal of private sector investment in that sphere?
§ Mr. MacGregorI confirm that there is now considerable private sector investment in small factories in assisted areas. The new commercial guidelines have resulted in a substantial success for EIEC. It is more in 6 tune with the market needs of tenants, because premises are being taken up, and of investors, as shown by my hon. Friend's question.
§ Mr. AdleyWill my hon. Friend reconsider the position whereby assistance is available for new factories but not for companies wanting to move to existing premises?
§ Mr. MacGregorI believe that my hon. Friend is thinking about tax allowances, which are the responsibility of my right hon. and learned Friend the Chancellor of the Exchequer.