Leominster Enterprise Park

Penny Mordaunt Excerpts

Tuesday 14th October 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Penny Mordaunt)]

I congratulate my hon. Friend the Member for North Herefordshire (Bill Wiggin) on securing this important debate on the management of Leominster enterprise park, and the role of PxP and the Homes and Communities Agency in running it. I know that he has been in contact with the Department—in fact, with several Departments, as he has outlined—and with the HCA regarding the park, and raised issues that concern several of his constituents. I am pleased to have the opportunity today to debate the issues surrounding the enterprise park.

I apologise on behalf of officials if there has been any departmental ping-pong. I congratulate my hon. Friend on using an Adjournment debate to find the Minister who is responsible. I have listened to his concerns and I am happy to take them on board and work with him. I will outline why we are limited in terms of the intervention that my hon. Friend is seeking and hope also to give him some comfort, saying how we might be of some practical assistance.

The Government recognise the importance of enterprise parks in supporting business, boosting employment and encouraging local growth. Leominster enterprise park has brought jobs and industry to northern Herefordshire and is providing the infrastructure to support further growth in the local area. The Government are committed to helping drive economic growth through creating conditions that allow businesses to thrive, and projects such as enterprise parks are, as my hon. Friend said, key to this.

My hon. Friend raised a number of concerns about the manner in which PxP has been operating at the enterprise park, one of which is that it has been obstructing development through land banking. PxP has stated that it remains committed to selling land as long as it can generate an acceptable return and its activity at the enterprise park supports its position. Since being established in 2007, PxP has supported the sale and development of 22 of the 26 plots at the enterprise park, with more than 20 companies bringing in new business to the area, including Orphans Press, Pinstone Communications and Polythene Solutions Ltd. Most recently, local steelworker, Frank H Dale, has reached agreement with PxP to build a manufacturing unit of 100,000 square feet. The development of that new factory will, in turn, allow the business to expand while remaining in the local area, and it will keep 68 existing jobs in the town and will bring in 50 new highly skilled jobs. That company supplies steel for a range of uses, supporting investment and growth in commercial, retail and residential sectors. The decision by that company to relocate to the enterprise park is a clear sign that businesses are willing and able to purchase land on the site from PxP. Construction started in August and should be completed by May 2015.

[Bill Wiggin]

I fully understand why the Minister has gone down this route. I deliberately kept the Dale story out. Dale’s is a wonderful Leominster company that started building barns for agricultural use. I think that, if she digs a little deeper, she will find that the whole thing hinges on a supermarket development on its original site. Therefore, it is a little bit of a red herring in this instance.

[Penny Mordaunt]

I thank my hon. Friend for that. I am going to get to issues that my hon. Friend is concerned about. I am simply stating that there have been considerable successes in getting businesses into that site. In fact, 85% of plots at the enterprise park will be occupied, showing that PxP is open to doing business where it makes commercial sense. I recognise that my hon. Friend has brought to my attention certain issues that appear not to make commercial sense, but clearly if 85% of the plots are being taken something is working.

Land banking is in nobody’s interests, and as long as PxP receives a suitable figure for a site, it appears to be happy to provide space for a growing business. I understand that my hon. Friend wants more to be done. I understood that PxP was assisting in resolving the broadband issue and was making representations to BT in that regard.

The Homes and Communities Agency is committed to developing business in the local area and has met a number of local businesses to offer support and address their concerns. Individual discussions have been held with both Powerline Services and Thomas Panels and Profiles to try to make progress on their issues. I understand that, in one instance, they were signposted to additional funders and that, in another case, an offer was made. I recognise that there was a discrepancy in the funding required to pursue that offer.

Additionally, the HCA has been liaising with the local authority to discuss the management of the enterprise park. The head of the HCA’s midlands west team met PxP and the town council to discuss promoting the site further and to consider additional ideas to ensure successful delivery. Details of considerable activity and negotiations on the site were given by the managing director of PxP, and the HCA is providing the town council with regular updates on developments at the enterprise park.

I understand and am pleased that area representatives from the HCA are also planning to meet my hon. Friend in the near future, to discuss how further progress can be made at the enterprise park. An important part of the HCA’s role is to drive sustainable, balanced growth in all parts of the country. Enterprise parks are a key tool in driving this growth, bringing new business, skills and activity to local areas, and providing the infrastructure for businesses to succeed. The agency understands how important they are to local communities and wishes to see them bring the greatest possible benefits to their local areas.

To summarise, Leominster enterprise park will shortly be operating at 85% capacity and can be considered successful in providing exciting opportunities for new business in the area. Although I agree with my hon. Friend that it is unfortunate that the park has not yet reached full capacity, with the recent progress, I anticipate that, hopefully, we will see the remaining plots sold before too long. With conditions continuing to improve, I am optimistic that the people and businesses of Leominster will benefit from that progress. I hope that my hon. Friend will continue to work with my Department and it, in turn, will ensure that the HCA does what it can to promote the site and work with local businesses to assist in progressing further sales.

Fundamentally, we are limited in what we can do to intervene. The influence of the HCA is limited and it has a duty of care to PxP when discharging its duties as directors. However, both my hon. Friend the Member for North Herefordshire and my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) have highlighted a number of practical steps that would, if they could be brought to fruition, certainly help promote the site.

I am glad that my hon. Friend the Member for North Herefordshire has a meeting planned with the HCA. I will be pleased to keep in touch with him on that matter and to look and see if we can progress the issues he mentioned about broadband and the facilities on the site, to ensure that this enterprise park’s reputation remains high.

I congratulate both my hon. Friends on this debate. Not only have they identified the Minister responsible, but I hope now that we will have an action plan to chase down any remaining issues. I am optimistic that we will get a site that will be at 100% occupancy.

Question put and agreed to.