§ Mr. Goodladasked the Secretary of State for the Environment (1) what effect he estimates the reduction in loan allocations for locally-determined non-key sector schemes in Cheshire will have on the financing of industrial estates by district councils;
(2) what effect he estimates the reduction in loan allocations for locally-determined non-key sector schemes in Cheshire will have on employment prospects in the county.
§ Mr. Guy BarnettThe Department cannot estimate the effect of the reduction in the 1978–79 borrowing allocation for the locally determined sector on either employment or the financing of industrial estates by district councils in Cheshire. The borrowing allocation is only one means of financing activity in this sector, and local authorities are free to determine both the level of activity and the means by which it is financed.
§ Mr. Goodladasked the Secretary of State for the Environment what representations he has received on the reduction in loan allocations for locally determined non-key sector schemes in Cheshire; and if he will make a statement.
§ Mr. Guy BarnettThe chief executive of Cheshire County Council has represented to me that the reduction in the locally determined sector borrowing allocation for Cheshire for 1978–79 will make it more difficult for local authorities to assist industry. However, the borrowing allocation is only one of the means by which local authorities finance capital expenditure in the locally determined sector, and the reduction in the borrowing allocation for 1978–79 reflected the fact that local authorities have been 631W financing an increasing amount of this expenditure from sources other than borrowing.