HC Deb 30 April 2001 vol 367 c466W
Dr. Whitehead

To ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement regarding European Commission approval of the five new land and property regeneration schemes designed to partially replace the partnership investment programme. [159861]

Ms Armstrong

The European Commission has now approved all of the five new schemes which have been designed to partially replace the Partnership Investment Programme, as followsa direct development scheme; two gap funding schemes, one for developments for a known end-user, the other for developments for disposal on the open market; a scheme for community regeneration, and a scheme for environmental regeneration.

All the approved schemes are now in effect. As a result, Regional Development Agencies and English Partnerships will be able to support a wide range of land and property regeneration projects, including projects which can be taken forward in partnership with the private sector.

Direct development involves the public sector acquiring the land to be redeveloped, carrying out the works, and selling the reclaimed site at open market value.

Under gap funding, the public sector bridges the gap between development costs and the likely end value, allowing property developers to bring contaminated, derelict and disused sites back into full economic use. Small and medium sized enterprises (SMEs) will be eligible for assistance under this scheme anywhere in England. Where the developer is not an SME, the project must be located in an Assisted Area.

Under the Community Regeneration scheme, funding is made available to local organisations so that they can take forward small-scale regeneration projects. Funding is only available for projects which are put forward by non-profit making bodies working in the community or voluntary sectors.

The purpose of the environmental regeneration scheme is to improve the environment by reclaiming derelict or potentially derelict land and providing a cover of vegetation. Subsequent uses of the site may include public open spaces, nature conservation areas and playing fields.

We now intend to build on this success by continuing to press the Commission for a new regeneration framework, under which state aid would be permitted for the regeneration of derelict or disused land throughout England and the rest of the European Community.