HC Deb 12 January 1989 vol 144 cc733-4W
Mr. Blunkett

To ask the Secretary of State for the Environment, pursuant to his reply to the hon. Member for Battersea (Mr. Bowis) on 21 December, what will be the form of, and time scale for, the consultation with local authorities and others on the subject of local authority economic development initiatives.

Mr. Gummer

[holding answer 10 January 1989]: As I indicated in my reply of 21 December, at columns 266–67, there will be consultation at the appropriate time with the local authority associations and other interested bodies on the regulations relating to the new power for local authority economic development.

Mr. Blunkett

To ask the Secretary of State for the Environment, pursuant to his answer of 21 December to the hon. Member for Battersea (Mr. Bowis), if he will make a statement on the boundaries between local authorities and the other organisations in the context of local authority economic development.

Mr. Gummer

[holding answer 10 January 1989]: Local authorities, voluntary organisations and private enterprise all have a role to play in local economic development. The local authorities' role is primarily to stimulate the local economy by preparing the way for effective initiatives by voluntary bodies and the private sector.

Mr. Blunkett

To ask the Secretary of State for the Environment, pursuant to his reply to the hon. Member for Battersea (Mr. Bowis) of 21 December on local authority economic development initiatives, what is his policy on the provision of funds specifically designed to facilitate the work of organisations that have incurred a deficit in their initial operational activity where direct assistance or rent and rate free periods are designed to ensure their future commercial viability; and if he will make a statement.

Mr. Gummer

[holding answer 10 January 1989]: We do not favour an open-ended commitment to pay grant where the size of the grant is related to a deficit which has not yet been determined. A grant of a specific amount of money towards an initial deficit may, depending on circumstances, be appropriate.