City Grant Initiative

Oral Answers to Questions — Environment – in the House of Commons at 12:00 am on 28 June 1989.

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Photo of Mr John Heddle Mr John Heddle , Staffordshire Mid 12:00, 28 June 1989

To ask the Secretary of State for the Environment how many jobs the city grant initiative is currently creating.

Photo of Mr David Trippier Mr David Trippier , Rossendale and Darwen

Projects approved since May last year are expected to provide over 8,500 permanent jobs and about 4,600 temporary construction jobs.

Photo of Mr John Heddle Mr John Heddle , Staffordshire Mid

Although I welcome those encouraging figures, how many derelict acres have been recovered, how many new homes and factories have been built and, most important, how much private sector investment has been brought in on the back of the city grant initiative?

Photo of Mr David Trippier Mr David Trippier , Rossendale and Darwen

The answer to the latter question is that for every pound of taxpayer's money that we have invested through city grant, we have attracted four times that figure from the private sector, which is most impressive. About 1,200 homes have been built, 230 acres of derelict and rundown land have been brought back into use, and approximately 3·5 million sq ft of industrial and commercial floor space will be created as a result of city grant.

Photo of Mr Bill O'Brien Mr Bill O'Brien , Normanton

What is the Minister doing to ensure that city grants are not used as a vehicle to generate greater tax dodges, as is happening with property enterprise trusts? When will the Minister make available to the House the details of the city grants that are given to private developers so that we can investigate where the money is going and how it is being spent? The reply that the Minister has given to the hon. Member for Mid-Staffordshire (Mr. Heddle) does nothing to encourage the availability of information or accountability for the money that is spent through city grant. When will the House be given the information about where the money is going?

Photo of Mr David Trippier Mr David Trippier , Rossendale and Darwen

That question is outrageous. I have never heard an hon. Member of any party ever say that city grant has been used for a dubious purpose. It has been widely recognised as a successor to the urban regeneration grant and to the urban development grant, but it is a much more efficient system. I have made clear to local authorities their significant part in this, because I will not accept an application for city grant unless the project has received planning permission. Therefore, it has been widely welcomed by the local authorities. I am only too happy to give the details to the hon. Gentleman and to the House and to answer any specific questions that he might table. We have absolutely nothing to hide and a great deal of which to be proud.