Mr. Ted Fletcherasked the Secretary of State for Industry whether he has now completed his review of the operation of the industrial development certificates control; and if he will make a statement.
Mr. Heffer: The essential purpose of the IDC control is to secure a better economic balance between different parts of Britain. This can only be achieved by ensuring that the needs of the assisted areas receive first priority in the operation of the control. I have therefore, been considering whether changes should be made to strengthen the operation of the control.
So far as the statutory basis of the control is concerned, I have decided to lower the limits below which certificates are not required subject to the statutory provisions concerning "related development". An order is being prepared to give effect to the new limits, and will be laid before Parliament in due course. The order will reduce the limit from 10,000 sq. ft. to 5,000 sq. ft. in South-East England, comprising Greater London and the administrative counties of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hampshire, Hertfordshire, Kent, Oxfordshire, Surrey, East Sussex and West Sussex. The limit in the rest of England outside the intermediate areas will be reduced from 15,000 sq. ft. to 10,000 sq. ft. In recognition of their 260W status as assisted areas, the intermediate areas in England, Wales and Scotland will retain their existing exemption limit of 15,000 sq. ft. The development areas. which include the special development areas, will remain outside the area of control.
I have also considered the policy framework for the operation of the control. Each IDC application is necessarily considered on its individual merits. This involves evaluating the case for carrying out the development at the proposed location by reference to distribution of industry criteria. The criteria include, in particular, the labour resources of the locality concerned and the extent to which the development is considered capable of being carried out in an assisted area. There is to be a more critical examination of IDC applications where the project is considered to be mobile. The needs of the active new and expanded towns outside the assisted areas will continue to be given second priority after the assisted areas in consideration of mobile projects. Applications by existing occupants to modernise and improve their premises—for example, in inner city areas—or to improve efficiency will be considered sympathetically, if the projects involve only modest increases in labour and no change in the range of products. Applications for localities where labour resources are particularly scarce will be examined especially carefully, and may be refused whether or not the project is considered to be mobile.