Select Committee on Welsh Affairs Minutes of Evidence


APPENDIX 9

Memorandum from the Land Authority for Wales

INTRODUCTION

  1. The Land Authority was created by the last Labour Government in 1975, and was continued in existence under the Local Government, Planning and Land Act 1980 ("the 1980 Act"), when the originating Community Land Act 1975 was repealed.

  2. The Land Authority's statutory function is of "acquiring land in Wales in which in its opinion needs to be made available for development, and of disposing of it to other persons (for development by them) at a time which is in the Authority's opinion appropriate to meet the need".

  3. In its activities the Authority is wholly self-financing. It pays Corporation Tax on its trading profit.

THE SIGNIFICANCE OF LAND ASSEMBLY

  4. The availability of suitable sites is critical to the economic development process. The Authority is not a developer of land (other than to provide infrastructure to facilitate development), and can therefore be totally focused on making land available.

  5. The Authority enjoys two statutory powers which assist in the discharge of its functions. The power of compulsory purchase, which, although not used extensively, can be integral to ensuring that land is assembled within a certain time frame. Additionally, the Authority has a power known as "title cleansing", which overrides all easements and restrictions on the title to land which it acquires, and converts them to compensation. Again this ensures that when a developer acquires land from the Authority, the land is free from all constraints and is immediately capable of development.

THE AUTHORITY'S ROLE IN THE PROVISION OF LAND FOR INDUSTRY

  6. The role of the Authority can be divided in two distinct parts : the provision of sites directly by the Authority; and the provision of sites for and at the request of other bodies, principally WDA and local authorities.

  7. The Authority maintains a limited portfolio of potential industrial sites, and works closely with local planning authorities in the allocation of sites as part of the Unitary Plan process.

  8. One of the three Strategic Objectives set annually by the Secretary of State for Wales for the Authority is the assembly of Strategic Employment Sites (the other two being urban regeneration and social housing). This was in recognition of the importance of having sites of not less than 50 acres readily available for inward investment or indigenous expansion.

  10. The Authority's programme of industrial land acquisition is closely related to local planning authorities' schemes for bringing forward development plans and evolving policies for releasing such sites. It achieves this by maintaining close and continuous liaison with these authorities and the Welsh Development Agency and by investigating the practical problems of developing land. These include ownership and other legal problems, the provision of road and rail access, dealing with new traffic generation, provision of services and by solving problems of poor ground conditions and contamination.

  11. The introduction of sustainability objectives into planning has led to the creation of large mixed-use schemes containing residential, employment and commercial development. The Authority has been in a unique position in Wales to bring forward such schemes, together with a series of private sector partners. Additional this has been very advantageous in the process of bringing forward industrial land. Apart from obvious planning gains, industrial sites have benefited from the provision of new highways and infrastructure funded primarily out of the proceeds of residential and commercial land sales.

  12. Within the last two years the Land Authority, working closely with the Welsh Development Agency, has acquired three major industrial sites : 250 acres at Duffryn, Newport (for LG), 100 acres at Bridgend and 100 acres at Felindre in Swansea.

  13. Also worthy of note is the significant role which urban regeneration plays in economic development and job creation. Attached to this submission is a list of major schemes (not printed) undertaken by the Authority in recent years.

INWARD INVESTMENT AND INDIGENOUS ENTERPRISES

  14. The Authority believes that there is a balance to be struck between the assembly of land for both purposes. It must be recognised that there is a considerable opportunity cost in acquiring, holding, and providing infrastructure to employment sites on a speculative basis. However, job creation is of such high priority that such costs must be incurred.

  15. Even indigenous expansion is jeopardised if land is not readily available, and the "competition" for such investment will increase with the creation of the RDAs in England.

Sir Geoffrey Inkin

Chairman

15 January 1998


 
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