HC Deb 02 February 1979 vol 961 cc578-9W
Mr. Spearing

asked the Secretary of State for the Environment whether the Government have reached a conclusion on the proposal to develop a merchandise mart at the Surrey docks in Southwark; and if he will make a statement.

Mr. Shore

As the House knows, I have been considering further measures to assist the revival of the London dock-lands; and in particular the proposal of the Trammell Crow Company of Dallas, Texas, to develop a £53 million trade mart at the Surrey docks in Southwark. The company has applied under section 8 of the Industry Act 1972 for financial assistance from the Government.

The Company has given us full information about the project and its commercial plans. We have taken the advice of the Industrial Development Advisory Board, and officials of my own Department and the Department of Industry have visited the Trammell Crow trade marts in Dallas and Brussels. Because the project is so novel and important we have made other very thorough inquiries including an assessment of the Brussels trade mart which is guaranteed by the Belgian Government.

After very careful consideration, I have this week informed Mr. Trammell Crow that the Government are not prepared to give a guarantee to the project in the form in which it has been presented to us. Apart from questions about the financial terms, all our advice is emphatic that the commercial prospects of a merchandise mart in this country are not the same as in the United States, where such marts have been successfully established.

The Government are firmly committed to helping forward the redevelopment of the dockland area with all speed. Our consideration of the trade mart proposal shows that we are prepared to use the powers available to us to facilitate commercial and industrial development there. In particular, section 8 of the Industry Act 1972 can be used by the Government to provide loans, grants or guarantees for major commercial and industrial investment, if these meet the usual criteria for such financial assistance. Within the framework of the Act there is in particular the selective investment scheme which is available for large and medium manufacturing projects which would not otherwise start.

Within a total available sum of £50 million, the Government are now prepared to consider guarantees for substantial projects in docklands. In suitable cases we are also prepared to make grants or loans, and up to £20 million is available for this purpose over the next four years. The assistance will be available only for projects which would anyway have been located in the South-East. The House will recognise that this commitment in no way detracts from our regional policies. The cost will be borne within my Department's expenditure limits and the funds available for expenditure on regional assistance to industry will be unaffected.

I shall discuss as soon as possible with the docklands joint committee and the dockland local authorities the type of projects to be considered, the planning constraints and the locations within the dockland boroughs which would be most appropriate.