English Industrial Estates (Hansard, 21 May 1990)

§ Viscount Ullswater
My Lords, we certainly intend to support English Estates in promoting the provision of industrial and commercial premises. The Government's policy is to ensure that premises and sites are available to meet the needs of businesses in the assisted areas. Wherever possible that should be done through private sector provision. English Estates will continue to make an important contribution to regional policy; but the Government now want it to move away from direct provision, wherever possible, and in many areas to operate primarily as a facilitator using a range of mechanisms to draw in private sector developers.

§ Lord Jay
My Lords, whatever that Answer means, the company has been one of the Government's most successful instruments for many years in promoting employment in areas that needed it in England. It owns a large area of valuable industrial property. Will the Minister note that any serious curtailment of its activities would be a major blow to these areas, in particular in the North of England?

§ Viscount Ullswater
My Lords, yes. I agree with almost everything that the noble Lord has said. The Government will continue to support provision of new floor space in assisted areas both through the range of incentives, as I have indicated, and, where incentives do not prove sufficient, through continued direct provision. A substantial assisted areas programme for English Industrial Estates of up to £52-8 million has been announced for 1990–91.

§ Lord Molloy
My Lords, in addition to industrial estates, areas are suffering severely because of closures. I refer, for example, to Ravenscraig in Scotland. What will the Government do to try to stop the loss of that steelworks and of so many skilled jobs?

§ Viscount Ullswater
My Lords, that is an entirely different question. English Industrial Estates deals with England. Scotland is a different region. However, perhaps I may indicate to the noble Lord that where the shipyards have closed down in Sunderland special provision has been made by English Industrial Estates to redevelop certain areas there in order to assist with employment.

The Earl of Selkirk
My Lords, if someone wishes to start an industrial estate, to what government office should he apply? Is it a matter for the Department of the Environment or the Department of Trade and Industry or is it left entirely to the local authority?

§ Viscount Ullswater
My Lords, I am answering for the Government but from the Department of Trade and Industry. English Industrial Estates encourages private sector developers into the assisted areas and provides a tremendous amount of market information. Such information would include available development sites, demand, rental levels, construction costs and rental and capital value growth indices.

The Earl of Selkirk
My Lords, where does one obtain such planning permission? Is it from the local authority or from the Department of Trade and Industry?

§ Viscount Ullswater
My Lords, I feel that other noble Lords are already answering the question. All planning is dealt with by the Department of the Environment.

§ Lord Dormand of Easington
My Lords, is the Minister aware of the splendid work undertaken by English Industrial Estates in the northern region? My noble friend Lord Jay was quite right to refer to it. Those of us who have had close dealings with the organisation over many years realise the tremendous work that is done for the northern region, which still has the highest rate of unemployemnt. Secondly, I am a little confused, as was my noble friend. Is the Minister saying that there is a possibility of privatisation at some time in the future?

§ Viscount Ullswater
My Lords, no, not so far as I know. The noble Lord may be thinking of what has been announced. English Industrial Estates will sell off some of the portfolio that it holds, thereby encouraging the private sector into these industrial areas.

§ Lord Peston
My Lords, employment in manufacturing is already declining. According to the Government's own forecast employment may continue to decline and unemployment rise at a faster pace in the coming year. Bearing that in mind, is it not a singularly inappropriate time for the Government to be interfering with English Industrial Estates, which everyone agrees has done an extremely good job? Surely what is required is that the Government give it more support rather than talk of selling off its assets.

§ Viscount Ullswater
My Lords, I am extremely grateful to hear the wholehearted support for English Industrial Estates from the noble Lord which we thoroughly endorse. I do not believe that investment in these assisted areas could be considered to be diminishing if the budget increased from £42 million last year to £52 million this year. Selling off the estates does not withdraw the premises available; it changes the landlord.

§ Lord Peston
My Lords, perhaps the Government will confirm my understanding from what I have read in the newspapers. I do not have the advantages of the noble Viscount. Are the Government totally committed to the continuation of English Industrial Estates? Will it continue to have sufficient resources to do the job that it has done so well until now?

§ Viscount Ullswater
My Lords, that is my reading of the matter.