§ Mr. Chapmanasked the Secretary of State for Trade and Industry what is his policy on rents charged for industrial property managed on his behalf by the English, Scottish and Welsh industrial estates corporations; and whether he will make a statement.
§ Mr. John DaviesFor many years it has been an established principle that rents for these factories should be determined on the basis of current market value, as assessed by the district valuer. This policy is sound and will be maintained. At the same time the application of the normal arrangements to leases first negotiated many years ago at a fixed rent can sometimes lead to sudden large increases in rent when the time comes for the leases to be renewed, and many of the factories are in areas of high unemployment. In these circumstances, I have decided that it would be right to provide some temporary relief by staging such increases over a limited period. The concession will apply to leases falling due for renewal in the coming year and details will be notified to tenants in due course by the appropriate estate corporation.