§ Mr. FrenchTo ask the Secretary of State for the Environment whether he has yet prepared the regulations under section 33 of the Local Government and Housing Act 1989.
§ Mr. David HuntThe Department has now sent copies of draft regulations to the local authority associations and others for comment. I have arranged for a copy of the draft to be placed in the library of the House.
The regulations cover those restrictions which will apply to the use of the new power for local authorities to promote economic development. They follow the proposals contained in the Government's consultation paper of August 1989, with some changes.
The requirement for non-local education authorities to agree individual education and training proposals with their education authority, is replaced by a requirement for agreement to a broad programme of activities. There will be a period during which such programmes can be agreed.
The requirement to get agreement of the authority in whose area another local authority may be planning an activity is replaced by a requirement to consult.
Instead of prohibition on "soft loans", their true cost is to be identified in a special memorandum account.
The cities of Exeter, Hereford, Worcester and York and the London borough of Ealing are to be added to the list of authorities allowed to give financial assistance above the value of £10,000 to businesses conducted with a view to a profit.
450WAnnual average levels of unemployment have been used instead of a single month's figures as one of the qualifications for designating authorities as able to give such assistance.
Procedures for the notification of local authority aid to the European Commission will be contained in further regulations, which will not come into effect before 1 July 1990.
The draft regulations provide for the restrictions to apply from 1 April 1990 to the new power. They will extend from 1 July 1990 to activities for the promotion of economic development carried on under any other enactment.