HC Deb 22 January 1976 vol 903 cc569-71W
Mr. John Evans

asked the Secretary of State for Industry if he intends to use the provisions of the Community Land Bill to purchase land at Irlam Steel Works from the British Steel Corporation to build an advance factory.

Mr. Gregor Mackenzie

No. Negotiations for an alternative site are well advanced.

Mr. John Evans

asked the Secretary of State for Industry if moneys allocated from the EEC Regional Development Fund to build an advance factory at Irlam Steel Works site are in any way endangered because of the delay in purchasing the land from the British Steel Corporal ion.

Mr. Gregor Mackenzie

No. The Regional Development Fund money allocated to this project by the Commission will be claimed as expenditure on the factory is incurred by the Department.

Mr. John Evans

asked the Secretary of State for Industry (1) how many advance factories he plans to build in Irlam and Cadishead;

(2) what is the reason for the delay in constructing the advance factory on the old Irlam Steel Works site;

(3) when his Department originally decided to build an advance factory on the old Irlam Steel Works site;

(4) when he expects work to commence on building the advance factory on the site of Irlam Steel Works;

(5) when he expects to agree a price with British Steel Corporation for land at Irlam Steel Works required to build a Government and EEC-financed advanced factory;

(6) how long negotiations have been going on between his Department and the British Steel Corporation to acquire land at Irlam Steel Works to build an advance factory; and when he expects to conclude these negotiatons.

Mr. Gregor Mackenzie

Two advance factories have been authorised for the Irlam area, the first in January 1973 and the second in November 1975. There was initial difficulty in finding a suitable site for the earlier factory but one was eventually selected on land belonging to the British Steel Corporation. Thereafter it proved difficult to reach agreement with the agents of the British Steel Corporation on the terms of sale, and then in November 1975 negotiations were initiated with the owners of an alternative site. These negotiations, which are now, in the hands of the district valuer, are well advanced and, if concluded successfully, building will be able to start in the later part of the current year.

Mr. John Evans

asked the Secretary of State for Industry what offers of legal assistance his Department has received from Salford City Council to purchase land at Irlam Steel Works from the British Steel Corporation to build an advance factory; and on what grounds the offer was refused.

Mr. Gregor Mackenzie

Early in December the council offered to negotiate the purchase and then convey ownership to the Department. While appreciating the spirit in which this offer was made, the Department concluded that on grounds both of cost and of speed it was preferable to proceed with the purchase of the alternative site which had by that time been initiated.