§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what is the estimated cost to public funds of the extension of the advanced factory programme announced on 10th November 1977; how much of that cost is expected to be recovered and by what means and when.
§ Mr. CryerThe estimated cost, including the acquisition of land where necessary, is £7.5 million at current prices. Factories may be sold at the higher of initial cost or current market value (cmv) at the time. Most are expected to be let at cmv rentals as assessed by the district valuer. Although the revenue-earning life of an advance factory may extend for as much as 50 years, it is not possible to estimate how soon initial costs will be recovered.
§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what has been the total cost to public funds of the advance factory programme since July 1974; and how much of that cost has so far been recovered from purchasers or tenants of the factories.
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§ Mr. CryerThe cost of 95 advance factories and 26 blocks of terrace units, comprising 108 units, authorised since July 1974 and completed by 31st October 1977 is approximately £16.6 million. Thirty-four of those factories and 69 of the terrace units have been provisionally or firmly allocated to tenants or purchasers to date. Most of these factories are not immediately revenue-earning because initial rent-free periods of two years are granted. The English Industrial Estates Corporation advises me that the rent-roll of those factories allocated is about £0.52 million per annum, before the award of rent-free periods. Four factories have been sold for £0.66 million.