HC Deb 26 June 1956 vol 555 cc27-9W
71. Mr. T. Fraser

asked the Secretary of State for Scotland why a private enterprise property company has been invited to finance the building of certain shops in the town centre of the new town of East Kilbride.

Mr. J. Stuart

The Corporation has decided, with my approval, to lease land to private developers who propose to erect shops and office buildings on a limited area, just under two acres, of the proposed town centre of East Kilbride. This is a procedure which has been followed by other new towns. The proposed arrangements will provide a substantial return to the Corporation and are without prejudice to ultimate decisions about the development of the remaining, and greater, part of the town centre area.

Mr. Patrick Maitland

asked the Secretary of State for Scotland the terms on which the East Kilbride Development Corporation has contracted with a private firm, details of which have been sent to him, to develop the new town centre.

Mr. J. Stuart

The negotiations between the firm and the Development Corporation are not yet completed but the Corporation informs me that under the proposed arrangements the return to the Corporation will be at least 20 per cent. of the net rents at which the properties are let.

Mr. Patrick Maitland

asked the Secretary of State for Scotland how much of the projected new town centre at East Kilbride is to be developed by a firm, details of which have been sent to him; and whether other private firms, or individuals, will have an opportunity to tender for contracts for developments.

Mr. J. Stuart

With regard to the first part of the Question I would refer the hon. Member to the Answer given by me to the hon. Member for Hamilton (Mr. T. Fraser).

With regard to the second part of the Question the Answer is in the affirmative.

Mr. Patrick Maitland

asked the Secretary of State for Scotland what steps were taken by the East Kilbride Development Corporation to make known that it was prepared to receive tenders from private firms or individuals for a contract to develop the new town centre before a contract was awarded to a firm, details of which have been sent to him.

Mr. J. Stuart

I am informed that the Corporation undertook inquiries of many sources and had discussions with other firms who might be prepared to carry out this development before deciding that the specialised experience of the firm with which negotiations are now proceeding would in its judgment produce the most satisfactory development of the first limited area of the town centre.