HC Deb 14 November 1967 vol 754 cc84-6W
Mr. G. Elfed Davies

asked the President of the Board of Trade what additional assistance he proposes to make available under the Local Employment Acts to help to attract industry to areas seriously affected by colliery closures; and in which areas such additional assistance will be available.

Mr. Crosland

I am proposing to establish or expand industrial estates either in or at sites which could serve the colliery areas affected. Major estates will be established at Cramlington (Northumberland), Meadowfield (Brandon, County Durham), Bridgend (Glamorgan), and rather smaller industrial estates in West Cumberland, Ayr, Cumnock (Ayrshire), and in the Carnwath/Carstairs/Forth area of Lanarkshire. At Fforestfach, Swansea, I am bringing into use certain land already in Board of Trade ownership. I am also buying additional land for industrial development at Landore, near Swansea, and at Kenfig, and I am looking for land which would be suitable for the needs of Lesmahagow in Lanarkshire.

Furthermore, in certain special areas in the development areas, where there may be exceptionally high unemployment through colliery closures, I am making available further incentives to encourage new industry. A rent-free period of up to five years will be available to firms renting a Board of Trade factory and providing suitable employment. Building grants up to 35 per cent. and loans at a moderate rate of interest to assist with the balance of the building costs or for other purposes, will be available. In order to assist new projects in the early years while they are becoming established, it has also been decided to extend the scope of grants under Section 4 of the Local Employment Act 1960 to permit operational grants to be made. These grants will normally be at the rate of 10 per cent. per annum for three years calculated on the cumulative expenditure incurred on the acquisition of eligible buildings, plant and machinery (less any building and investment grants). These incentives will, like other forms of assistance under the Local Employment Acts, be subject to the provision of employment, and we shall have regard to the number of jobs to be provided. Grants and loans under the new arrangements will be subject to the usual check on viability by the Board of Trade Advisory Committee.

These further incentives will be available only for new projects being brought into the special development areas. They will not be available to extensions of existing establishments, nor will it normally be possible to provide the special incentives to projects in the service industries whose location is, in the main, determined by the need to serve local markets, nor will they be available for projects which are merely transferred from existing development areas. As regards grants, nationalised industries will continue to be eligible for assistance for projects which are in competition with the private sector.

These are intended to be short-term measures; they will only apply so long as the employment needs of these areas continue to justify special assistance.

I shall also arrange as Board of Trade advance factories are disposed of in the special areas to replace them as long as letting prospects remain reasonable.

The special areas in which I propose to make these additional measures of assistance available are the following Ministry of Labour employment exchange areas:

Scotland
Girvan. Sanquhar.
Lesmahagow. Shotts.
Leven and Methil.
Wales
Abertillery Neath.
Ammanford. Newbridge.
Bargoed. Pontardawe.
Blackwood. Pontlottyn.
Brynmawr. Resolven.
Cymmer. Tonypandy.
Ebbw Vale. Tredegar.
Ferndale. Troorchy.
Garnant. Ystalyfera.
Maesteg. Ystrad Mynach.
Northern
Ashington. Durham.
Aspatria. Haltwhistle.
Bedlington. Houghton-le-Spring.
Birtley. Lanchester.
Bishop Auckland. Mary port.
Blyth. Seaton Delaval.
Chester-le-Street. Shildon.
Cleator Moor. Spennymoor.
Cockermouth. Stanley.
Consett. Whitehaven.
Crook. Workington.

I shall remove or add places to this list as circumstances require.

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