‘Regionalism’ row sparked by public land sale

Shadow Business Minister Gordon Marsden accused the Government of treating Yorkshire and the other English regions “outrageously” after it was confirmed 15 sites owned by Yorkshire Forward can now be sold off in preparation for the agency’s closure next year.

The sites are understood to be valued at just under £10m and include a plot at the Advanced Manufacturing Park in Waverley, Island Wharf and the former ABP site adjacent to it on Hull’s Humber Quays, the old National Tyres site in Bradford, the former Bristol Street Motors in Leeds, Colburn Business Park in North Yorkshire and land at Rockingham, by Junction 36 of the M1,

But the decision is likely to cause anger in the region because while money from the sales will go back to the Treasury as the Government seeks to reduce the deficit, the Greater London Assembly is being handed control of all London Development Agency’s assets.

Ministers say this will give London an “important portfolio of regeneration assets” – at the same time as some of Yorkshire’s are sold off and new Local Enterprise Partnerships are starved of cash to kickstart Yorkshire’s economy.

Mr Marsden said: “The announcement by BIS (the Department of Business Innovation and Skills) today that they are putting up a fifth of all the RDA’s land and property assets for sale to the highest bidder confirms a ‘fire sale’ of resources that should stay in the regions is well under way.

“This is in complete contrast to the free gift the Minister is making to Boris Johnson by handing over all the LDA’s assets over to him and the GLA. This comes on top of an earlier £388m Ministers have given to the Mayor of London over the next three years for regeneration and economic activity to compensate them for the end of the LDA.

“In comparison to this transfer of assets to London, the way in which BIS ministers are treating the English regions is outrageous.

“Ministers are starving the regions of access to the key assets they need to push growth, create jobs and stimulate local economies.”

Yorkshire Forward built up a £90m portfolio of assets during its existence, funding the development of some buildings – such as offices at Hull’s Island Wharf – to try to boost the economy and attract new businesses while collecting some key development sites which are earmarked for future regeneration.

The Yorkshire Post reported yesterday that the agency has been forced back to the drawing board to rethink plans for half its sites after the Government turned down proposals to either hand them to councils or put them in public sector trusts.

Last night, it emerged Ministers have approved the first round of sales. Councils could be given first option on some of the assets but they will have to pay market value.

The other sites to be put up for sale are a former reclaimed metal salvage site at Potteric Carr, Doncaster, Capitol Park in Goole, a site at Spring Street and Portland Street in Hull, land at Green Lane in Featherstone, land at Grimethorpe Colliery, Woodhouse Farm in Pontefract, Hesleywood spoil heap at Chapeltown in South Yorkshire and the Tarmac site at Wath-upon-Dearne.

In a letter to Shadow Business Secretary John Denham, Business Minister Mark Prisk said: “RDA assets will be sold at a fair and appropriate value or transferred within Government for continued public sector support or until such a sale can be agreed.

“The sites we have approved for sale are those where the market is able to support a reasonable price which in our view reflects best value. If no such deal is available then we reserve the right not to sell.

“In some cases, local authorities will be given first refusal to acquire these assets and the RDAs are working closely with local authorities and other local partners to achieve the best outcome for the local area, consistent with value for the public purse.”