§ Mr. Maddenasked the Secretary of State for Industry if he has received the final report of the feasibility study, conducted by Calderdale Council and the English Industrial Estates Corporation, into the conversion of a mill in Calderdale to smaller industrial units; if he has received full financial information associated with the scheme; how costs compare with conventional advance factory units; and if he will make a statement.
§ Mr. Cryer, pursuant to his answer [Official Report, 15th March 1978; Vol. 946, c. 200], gave the following information:
The feasibility study revealed that the framework of the mill was cast iron, which meant that its conversion would have been much more expensive than expected. The objective of the conversion was to provide floor space at a fraction of the cost of constructing new advance factories and thereby allowing units to be made available to small firms at low rents. The average estimated cost of the preferred conversion scheme would be £10.67 per sq ft compared with a new factory in the same area of £12.35 per sq ft. The rental based on market value and not cost would be 47p per sq ft and a return on capital of only 4.4 per cent. 5W This compares with 81p per sq ft and a capital return of 6.56 per cent. on a new factory.
There were also severe physical constraints with this particular mill for example exceptionally low headroom. It was therefore decided that it would not be viable to proceed with this scheme. However I have also written to my hon. Friend and explained that we are still considering a conversion where the aims of a relatively inexpensive and satisfactory conversion can be achieved.