Enterprise Zones: Designations (Hansard, 31 March 1982)

Lord Campbell of Croy
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Bellwin)
My Lords, of the 11 enterprise zones announced, 10 have now been designated. We expect the Isle of Dogs zone to be designated by the end of April. We are closely watching the development of the existing zones, but have no plans to designate any more at the moment.

Lord Campbell of Croy
My Lords, I thank my noble friend for that reply, the reasons for which I fully understand. As there is no doubt that the 10-year holiday from imposts and form-filling has already 1385 been proving itself to be a very successful scheme, will the Government bear in mind the possibility of designating other zones, perhaps in four or five years' time?—because circumstances can change considerably in different parts of the country.

§ Lord Bellwin
My Lords, I am grateful to my noble friend for bringing out the point, but perhaps I could offer him even more encouragement by saying that as we are watching this so closely, if the success for which we are hoping is shown, he would not have to wait the four or five years to which he refers.

§ Lord Cledwyn of Penrhos
My Lords, is the Minister aware that we welcome the fact that there will not be a delay for five years? But can he tell the House what is the difference between an enterprise zone and a special development area? Is he aware that special development areas were created in those districts which had the highest unemployment, and that there are special development areas throughout the country with unemployment of over 20 per cent? Would it not be sensible and proper, if these enterprise zones have any validity, to make every special development area an enterprise zone?

§ Lord Bellwin
My Lords, with respect, I think that the noble Lord knows the great difference between the special development areas and the enterprise zones. Many concessions are given in the enterprise zones that do not apply anywhere else, not the least of which is the freedom from paying rates. At this stage I do not think that the House would want me to reel off all the other concessions, but they are very considerable and there is quite a difference. I know that everyone is hoping that they will be the success which I think they will be.

§ Lord Cledwyn of Penrhos
My Lords, with respect, the noble Lord has not answered my question. I asked him whether he recognised that special development areas have the worst unemployment problem in the country. If there is merit in the enterprise zones, can he not say that he will make these special development areas enterprise zones, so that they can reap the benefits which he has just described?

§ Lord Bellwin
My Lords, I do not know whether the special development areas have the worst employment situation in the country. I hear what the noble Lord says. But whether it is those areas or any other areas, because of the success that we are hoping to see in the enterprise zones, when we are considering where others should be we shall certainly take into account the point that the noble Lord makes.

§ Lord Glenkinglas
My Lords, will my noble friend bear in mind that, although I very much agree with what he is doing, it needs a little care? Perhaps he will remember the Gilbert and Sullivan tag: When everyone is somebody, Then no one's anybody".

§ Lord Bellwin
My Lords, I learn something new every day, and have done yet again. I take the point.

§ Lord Underhill
My Lords, as the noble Lord referred to the Isle of Dogs enterprise zone, is he able to comment upon recent press reports that there have been some unfortunate delays and disappointments in connection with the launching of this by the London Docklands Corporation? Could he comment on those reports?

§ Lord Bellwin
My Lords, I fear I cannot comment on that. If the noble Lord would like me to look into it further and be in communication with him, I gladly undertake to do so.

§ Baroness Sharples
My Lords, can my noble friend give any estimate of how many small businesses have been helped in the enterprise zones so far started?

§ Lord Bellwin
My Lords, again I fear that it is too early for me to be able to do that. I am sure that my noble friend will know that one of the features within the zones is that we are not calling for as much statistical information and as many returns as one normally does outside the zones. Nevertheless, I understand the point that my noble friend is making and I would think that it will not be long before Government will be saying much more about what is being achieved. I am anxious not to be saying all the goodies which are taking place and then leading to disappointments, but we are very encouraged by what is going on and so, I hope, will be your Lordships.