HC Deb 21 July 1994 vol 247 cc581-3W
Mr. Morgan

To ask the Secretary of State for Wales if he will list those grant schemes operated by the Welsh Development Agency which have been suspended or terminated on legal advice during the past quarter; on what date the legal advice was received; on what date the letter of instruction to terminate the grant schemes was sent to the agency; if he will place a copy of the independent legal advice in the Library; what is his estimate of the budgetary implications; and if he will make a statement.

Mr. Redwood

On 8 June my Department instructed the WDA to avoid further contractual commitments on the mid-Wales development grant scheme, DRIVE, rural conversion grant and the community enterprise pro-gramme. On 21 June my Department extended this instruction to small business loans, subsidised rural loan schemes, valleys enterprise loans schemes, valleys small loans schemes and the technology growth fund. As I explained to the House, I do not wish powers to be used which are subject to any legal uncertainty. I do wish to strengthen local authorities' involvement in these areas.

The Comptroller and Auditor General has certified the accounts of the WDA without qualification.

Mr. Morgan

To ask the Secretary of State for Wales (1) what proposals he has to clarify the legal position concerning the grant-in-aid provided by his Department to the Welsh Development Agency for the purposes of the rural conversion grant, the DRIVE scheme, the technology growth fund, the rural loans, valleys loans and the small loans scheme; and what consultations he has had with Welsh local authority associations in relation to powers to give loans and grants to small firms and the provisioning of(a) basic and (b) supplementary credit approval for this purpose;

(2) what proposals he has had to recommence payments of all the Welsh Development Agency and mid-Wales development loans and grants schemes to small and medium-sized firms suspended on 8 July.

Mr. Redwood

As I made clear in my statement to the House on 7 July,Official Report, columns 463–64, I intend that in future grant schemes for small businesses should be delivered by the local authorities. Officials are consulting with the Welsh local authority associations.

Arrangements for the figure of loans to small businesses are under consideration.

Mr. Morgan

To ask the Secretary of State for Wales what consultations he has had with the chairman of the Welsh Development Agency in relation to the irregular use of grant-in-aid for(a) rural conversion grant, (b) the DRIVE scheme, (c) the technology growth fund, (d) rural loans, (e) valleys loans and (f) the small loans scheme; what expenditure under the above headings has been qualified in the 1993–94 accounts of (i) the agency and (ii) Development Board for Rural Wales; and if he will make a statement.

Mr. Redwood

I meet regularly with the chairman of the Welsh Development Agency to discuss a range of issues.

Neither the agency's accounts nor those of the Development Board for Rural Wales have been qualified.

Mr. Morgan

To ask the Secretary of State for Wales what representations he has received from the Welsh Development Agency concerning the issuing of a press release by the agency explaining the qualifications to its accounts for 1993–94 arising from legal dishonesty over the rural conversion grant, DRIVE, technology growth fund, rural loans, valleys loans and small loans scheme.

Mr. Redwood

The Comptroller and Auditor General has certified the agency's accounts without qualification.

Mr. Morgan

To ask the Secretary of State for Wales if he will specify the guidelines applying to the Welsh Development Agency's urban regeneration activities in(a) 1991, (b) 1992 and (c) 1993 as regards consents required from his Department for any proposed land acquisition by the agency for such purpose; what accelerated procedure was available for such purposes; on how many occasions such (i) ordinary and (ii) accelerated consent was sought from his Department in each of those three years; if he will specify the local authority area concerned; and what was the average length of time taken by his Department to approve any such applications.

Mr. Redwood

Proposed land acquisitions by the Welsh Development Agency in respect of its urban development programme and requiring consent, are dealt with under urban development guidelines which were introduced in April 1992. Prior to that, all land acquisitions were handled by reference to the site development and factory building guidelines introduced in 1980. Approvals are not subject to a pre-determined timetable and proposals are dealt with as appropriate.

Approvals for proposed acquisitions are as follows:

Local authority area Number Year(s)
Merthyr Tydfil 2 1991–92 and 1993–94
Cynon Valley 1 1991–92
Preseli-Pembrokeshire 1 1991–92
Local authority area Number Year(s)
Llanelli 1 1993–94
Ynys Mon 2 1993–94
Rhondda 1 1993–94