HC Deb 02 May 2002 vol 384 cc1037-8
6. Mr. Tom Harris (Glasgow, Cathcart)

What action her Department is taking to target enterprise projects at disadvantaged areas and groups. [52003]

The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths)

We are spending £170 million developing businesses in disadvantaged areas and among under-represented groups. The latest round of phoenix funding benefits a further 11 areas, including those in and around Bolton, Bristol, Dorset, Hertfordshire, Isle of Wight, Liverpool, London, Norfolk and Sheffield. It includes the city growth strategies to help inner cities, and the development fund for rural renewal. Similar schemes operate in Scotland.

Mr. Harris

Is my hon. Friend aware that 9 per cent. of the total land area in Glasgow has been designated an undeveloped brownfield site? Does he agree that Government action to prepare such sites for commercial use would have a significant positive impact on employment not only in Glasgow but in cities throughout the United Kingdom?

Nigel Griffiths

I wholeheartedly endorse that. On Tuesday, I visited one such site in Deeside, where this sort of development money is now greatly benefiting the local community and local enterprise. It is particularly important that funds such as those under the community development funding initiative in Glasgow go towards developing businesses. I know that such corporate venturing is very important.

Mr. Ian Davidson (Glasgow, Pollok)

Is the Minister aware that my constituency has the highest unemployment in Scotland? Will he clarify what is being done to ensure that people from my area can get jobs in enterprises that are supported by his Department over a wider travel-to-work area? What has he done in particular to help Pollok and Glasgow recently?

Nigel Griffiths

I am grateful to my hon. Friend for raising the issues that concern his constituents. I know that he will want to join me in congratulating the Government on their tremendous efforts in cutting unemployment in his constituency, although I would be the first to acknowledge that more must be done and that there are no grounds for complacency. I shall ensure that he is written to with details of all the help that has been available in his constituency from both my Department and the Scottish Executive equivalent.

Brian Cotter (Weston-super-Mare)

Will the Minister clarify the bid scheme that the Government are proposing to develop areas? On the face of it, it seems to be very good, but will it effectively deliver for businesses that do not have a lot of resources? There is concern that the application of extra business rates and taxes will be all right for larger concerns but not for smaller businesses, which could be overcome by bigger firms that want to spend more money and pay more business rates to revitalise an area. Will the bid scheme overcome that problem?

Nigel Griffiths

Looking at the mass of the company is an important point. It is obviously much easier to give 10 grants to 10 large bids than to do all the work that might be needed to sub-divide them into 100 bids. I know that officials at the DTI are well aware of that and of the need to help SMEs. I applaud the efforts that have already been made in that direction. I shall draw the hon. Gentleman's words to their attention; we take them to heart.

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