HC Deb 17 March 1982 vol 20 cc150-2W
Mr. Watson

asked the Secretary of State for the Environment whether he is now able to make a statement about the review of the functions and operations of the Development Commission and COSIRA.

Mr. King

Following their consideration of the review, the Government have decided that the Development Commission and COSIRA will be given greater operational freedom, while continuing to adopt a comprehensive approach to the needs of rural areas by providing economic and social assistance where necessary. They will also continue their highly successful function of encouraging the private sector to help finance small rural firms.

Subject to general guidlines it will in future be for the Development Commission to select the rural areas in which to concentrate assistance and to decide where to build their factories within them. They will also be free to use part of their funds to provide workshops in rural areas outside these priority areas where they are satisfied there is a need.

COSIRA's advisory credit and training services will, as before, be applied throughout rural England but will in future also be made available to small retailers. It is expected that this will be of particular help in those areas threatened with the closure of village shops. Loan at concessionary rates of interest will continue to be available to small manufacturing and service firms (but not retailers) within the priority areas selected by the Commission for projects which increase employment. Rent free periods will also be available where necessary within priority areas to tenants of Development Commission factories.

The commission will continue to give social assistance to rural communities mainly through its support for voluntary organisations working in the countryside.

These changes will enable the Development Commission and COSIRA to respond more readily to the needs of rural communities and will conform with the Government's aim of concentrating scarce resources in those areas in greatest need. They will be accommodated within existing cash limits and public expenditure provisions.