HC Deb 19 March 1986 vol 94 cc190-1W
Mr. Fallon

asked the Secretary of State for Trade and Industry what is the normal date for publication of English Estates' annual report and accounts; and why the report and accounts for 1984–85 have not yet been published.

Mr. Channon

[pursuant to the reply, 14 March 1986, c. 601]: English Estates would normally publish its accounts by the August following the end of the relevant financial year. However, last year, before its accounts were ready for publication, the Comptroller and Auditor General qualified the accounts of the Welsh and Scottish Development Agencies as regards the treatment of property valuations in them. The Public Accounts Committee has been considering this issue and I understand that its report is due soon.

As the same issue arises in the case of English Estates 1984–85 accounts, its publication has been delayed. They will be published as soon as the discussions now under way about the most appropriate treatment in them of property valuations are satisfactorily concluded.

Mr. Fallon

asked the Secretary of State for Trade and Industry whether he will make a statement on the funding of the English Industrial Estates Corporation.

Mr. Channon

The 1985 Industrial Development Act introduced a more commercial system of funding the EIEC with effect from 1 April 1986, and I have now agreed the arrangements for the 1986–87 financial year under this new system. In the future, English Estates will use the income from rents and the sale of assets such as factories and land to fund its development programmes and my Department will contribute a fixed amount of grant-in-aid each year.

The chairman of English Estates has confirmed that under these new arrangements he is confident that English Estates will be able to spend at least £32 million on new development in the assisted areas next year and continue the redevelopment of Chatham dockyard without affecting the programme in the assisted areas.

Consistent with the 20 per cent. increase in the provision for EIEC announced by my right hon. and learned Friend last November, my Department will contribute £12.6 million grant-in-aid towards this development programme and the balance will be raised by English Estates itself from rents and sales.

These new arrangements should allow English Estates to continue its development programme in the assisted areas without any cutback from the average level of recent years.