Select Committee on Transport, Local Government and the Regions Appendices to the Minutes of Evidence


Supplementary memorandum by Department for Transport, Local Government and the Regions (ERF 17(b))

  Q419: in our evidence, we said that the Department's guidance to RDAs and EP on the PIP replacement schemes are on the Department's website. In fact, as this is internal guidance, it has not been placed on the DTLR website. It is open to RDAs to put their advice on using the schemes on their websites. The guidance which was jointly produced with RICS (referred to at Q368) is available on their website and was widely publicised through a series of regional seminars in which we participated. The guidance was posted in July last year and can be found at the RICS website: www.rics.org.

  Q432: RDAs do not record their projects in this way. Outputs are recorded in one or more of four categories: brownfield land reclaimed; jobs created/safeguarded; new/refurbished floorspace; new and refurbished housing. The attached table displays RDA expenditure under the Land and Property programme in 2001-02 and information on outputs achieved in that year. A copy of the Monitoring Framework for the RDA's Single Pot this year is also enclosed for information. RDAs are required to obtain Government approval before investing in projects which involve the use of greenfield land. RDAs are involved in the development of very few greenfield sites, there were only seven requests for approval to develop greenfield land in 2001-02.

  Q467: we have asked the RDAs to let us have their analysis of the impact of the PIP decision. This should be available at the beginning of June. The consultancy work which was referred to in this supplementary memorandum and in evidence is actually being carried out by English Partnerships who have expert knowledge of the land development approach used in Germany and other countries. This report will be ready by the end of June. Separately, we intend to commission a wider consultancy to look at all of the different schemes which are being operated by other Member States.

  Q507: I can confirm that the heritage scheme will cover local authorities.

  Q516: The Scottish Homes GRO scheme was notified on 9 July 2001 and approved on 13 November. The Risk Capital Guidelines were approved on 21 August 2001.

NEW HOUSING GAP FUNDING SCHEME

  We do not normally provide copies of our notifications to the Select Committee as they are formal communications between a Member State and the Commission, however, I am enclosing a short note which describes the purpose of the scheme. Turning to your specific points:

    —  the new scheme will not be restricted to predominantly residential areas. It will be available for use in any area where market failure causes the cost of provision to exceed the forecast end value of the development;

    —  the new scheme only applies to housing developments. It will not cover mixed-use projects;

    —  it will be possible to use the housing scheme and the two existing gap funding schemes together in Assisted Areas in two ways:

      (a)  by splitting a project into two parts. One part will involve the provision of commercial and business premises which will be supported under the gap funding schemes while the second part—the housing element—will be taken forward under the housing gap funding scheme;

      (b)  by taking forward the development of housing and business premises as one single project, which would then be subject to the Aid Intensity Ceilings (35 per cent in Tier 1, 10-20 per cent in Tier 2).

SUPPLEMENTARY INFORMATION

  Apart from other Government departments, we consulted the Regional Development Agencies, Government Offices and English Partnerships on the housing gap funding scheme before it was notified to the Commission.

RDA LAND AND PROPERTY EXPENDITURE AND OUTPUTS 2001-02

Expenditure (£ millions)
LDA (Cash)
SW
SE
EE
EM
WM
YH
NE
NW
Total (excluding LDA)
PIP
12.60
4.10
1.80
1.03
8.66
18.70
14.10
17.03
51.50
116.92
Non PIP
41.60
41.18
22.80
8.26
19.26
26.10
37.60
29.98
49.02
234.20
Total
54.20
45.28
24.60
9.29
27.92
44.80
51.70
47.01
100.52
351.12
Note:
The expenditure figures are on accruals (RAB) basis (except the LDA which only operates on a cash basis).


OUPUTS ATTRIBUTED TO THE LAND AND PROPERTY PROGRAMME IN 2001-02

  
LDA
SW
SE
EE
EM
WM
YH
NE
NW
Total (RDAs and LDAs)
Brownfield Land Reclaimed (Ha)
42
41
48
9.5
101
115.9
313
131.87
303.8
1,106.97
Jobs Created/Safeguarded
1,210
3,287
  
27
  
3,533
2,792
1,572
2,855
15,276
New/Refurbished Floorspace (sqm)
44,039
82,555
  
3,169
  
72,210
95,474
32,466
75,226
405,139
Housing—New/ Refurbished/ Facilitated (units)
224
153
  
114
  
183
0
262
483
1,419
Notes:
1.The RDAs are still in the process of collating their final figures, in particular for use in their forthcoming Annual Reports. Therefore, these figures may be subject to change in due course
2.EMDA and SEEDA are currently able to provide a figure only for the brownfield land output category.





 
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