Depressed Areas: Assistance (Hansard, 3 May 1988)

The Minister of State, Department of the Environment (The Earl of Caithness)
My Lords, we announced on 7th March a range of measures which build on the programmes and initiatives developed by the Government since 1979 to deal with urban dereliction and inner city decay. These measures are aimed primarily at encouraging development, raising business confidence and motivating inner city residents. In all, about £3,000 million will go to support urban regeneration in Britain through government programmes in 1988–89, bringing in considerably more than that in private investment.
In rural areas, assistance provided through the Development Commission has been increased by almost £5 million over the past two years.

§ Lord Dormand of Easington
My Lords, while recognising the problems of the inner cities does not the Minister agree that there are continuing major difficulties in urban and rural areas involving unemployment, housing, infrastructure and other matters? In such circumstances is the Minister satisfied, in the Answer that he has just given me, that the balance of assistance from government between inner cities and urban and rural areas is correct, particularly in those areas which are unable to attract private capital? That balance is really what I am stressing.

The Earl of Caithness
My Lords, we always keep the split in how the money will be spent under review. We are always seeking ways to target the money efficiently. That is why my right honourable friend the Prime Minister made the announcement of 7th March.

§ Lord Brougham and Vaux
My Lords, perhaps my noble friend can tell the House how Her Majesty's Government propose to increase the effectiveness of their policies for assisting rural areas.

The Earl of Caithness
My Lords, on 1st April the Development Commission merged with its main agency, the Council for Small Industries in Rural Areas (CoSIRA), under the title of the Rural Development Commission. The staff and activities of CoSIRA have been transferred to the commission 374 and form its small business service. The commission will continue to be the principal agency charged with carrying forward the Government's policies for diversifying rural enterprise with the added advantage of now being in direct contact with private firms in rural areas.

§ Lord Dean of Beswick
My Lords, is the Minister aware that until a short time ago there was concern over the slowness of assessment by the Department of the Environment and the Department of Trade and Industry of various schemes submitted for both urban and rural areas? Can he say whether any additional staff are being engaged in order to speed up the disposition, which is causing serious concern because of the sources of private capital which are involved?

The Earl of Caithness
My Lords, the noble Lord will be pleased to know that the new, simpler city grant for the private sector will build on the success of the urban development grant and the urban regeneration grant programme. So far, £153 million of public funds has been allocated, attracting £632 million in investment from the private sector. That has provided some 29,500 jobs and almost 7,500 homes and has reclaimed 1,250 acres of derelict land.

§ Lord Elliott of Morpeth
My Lords, will my noble friend agree that the urban development corporations have played an enormous part already in regenerating urban areas? Is he aware that the Tyne and Wear Development Corporation is celebrating its first birthday and has already earmarked £¼ billion in public and private funding for a remarkably small geographical area on the banks of the Tyne and Wear?

The Earl of Caithness
My Lords, I am sure that the whole House is delighted to hear that good news. As my noble friend is aware, we believe that the urban development corporations have a large part to play in revitalising parts of the country. That is why we have increased their number and now propose to do so further.

§ Lord McIntosh of Haringey
My Lords, the Minister referred in his Answer to the wishes and needs of people living in depressed urban and rural areas. Without in any way underestimating the achievements of the proposals and policies he has referred to, will he recognise that the needs and wishes of the people living in depressed areas are well expressed by their elected local authorities and that the Government would do well to pay more attention to the opinions, and to seek the help of, those local authorities?

The Earl of Caithness
My Lords, the noble Lord will be aware that in the booklet Action for Cities, which was launched by my right honourable friend, a number of projects which had been undertaken with local authorities were highlighted. We consider that to |be|an|integral part of the future for inner city areas. Of course some local authorities have been remarkably slow in taking up the initiative.