§ Mr. WorthingtonTo ask the Secretary of State for Scotland what evidence he has of the trends in investment by the private sector in new industrial and warehousing premises in Scotland.
§ Mr. Allan StewartThere is no clear statistical evidence from which trends in the volume of private sector industrial investment can be drawn. There are, however, encouraging signs of increased activity in this area.
During 1990, consistent: with the Government's policy of encouraging the private sector to take a greater role in the development and management of industrial property in Scotland, the Scottish Development Agency disposed of property holdings valued at almost £140 million. The disposals included sites with development potential and we are aware that the new private sector owners have undertaken or plan to undertake industrial developments on a number of these.
It seems likely that owner-occupiers whose businesses are prospering will continue to invest in new units and extensions and that other businesses will follow as the economy recovers. Interest in speculative building, which has been constrained by low rents and recent high interest rates, is expected to revive as interest rates fall and rents increase to match building costs.