Some Problems in the Control of Industrial Location
| Date | 01 March 1955 |
| Author | J. Sykes |
| DOI | http://doi.org/10.1111/j.1467-9299.1955.tb01629.x |
| Published date | 01 March 1955 |
Sonze
ProbZems in
the
ControZ
of
Industrial Location
By PROFESSOR
J.
SYKES
The Head
of
the Deparrment
of
Economics in the Uiri-Jersity College
of
the South- West
surveys
British experience in controlling the location
of
industry since
the
Distribution
of
Indusrry Act,
1945.
ONTROL
of industrial location now hss been practised in Great Britain
C
for nearly ten years.
It
was inaugurated by the Distribution of Industry
Act, 1945, modified by the Town and Country Planning Acts,
1947,
and
supplemented by the Distribution of Industry Act,
1950.
Control has been
limited to new factory building projects, and to those exceeding a minimum
size-over
10,000
square feet' up to 1947, and over
5,000
square feet2 since
1948.
This article deals with certain problems that have been encountered
in administering the Acts.
The
Distribution
of
Industry
Act,
1945
The fundamental purpose of the
1945
Act was
".
. . to provide for the
development of certain areas .
.
.",
i.e., those parts
of
the country specially
liable to unemployment. These-North-East, West Cumberland, South
Wales, Scottish-were styled
by
the Act
"
Development Areas." In
1946,
Wrexham and South Lancashire were added;
in
1949, Merseyside and
North Scotland; and in 1953, North-East Lancashire. The Board
of
Trade-the department named to administer the Act-was endowed by
it
with various powers. From the beginning, the Board elected to use these
so
as to encourage firms to establish their factory projects in the Development
Areas rather than to forbid them to do
so
in all other parts of the muntry3-
with the exception that firms were restricted in building in congested areas.
This caused the Board to rely heavily upon inducements
:
and the problem
arose
of
finding inducements which would attract firms to locate their new
building in the Development Areas. During the first two and a half years,
the solution to this problem was not difficult. For licences were needed for
factory buildings, and these were granted much more readily to firms willing
to build in the Development Areas. Moreover, certain raw materials were
then scarce, and the Board of Trade helped such firms to obtain supplies.
Still further, firms seeking locations in the Development Areas were given
speedy access to their many surplus war factories'
;
they were able to become
tenants of factories erected by the government for which only moderate
rentals were charged; and they could secure loans for operating capital,
upon certain conditions, from the Treasury. Lastly, spare labour in the
'Prescribed by
:he
Distribution
of
Industry Act,
1945,
Section 9.
?Prescribed by the Town and Country Planning Act, 1947, Section 14; and
the
Town and Country Planning Act (Scotland), 1947, Section
12.
"The Distribution
of
Industry Bill originally contained
a
clause giving the Board
of
Trade power to restrict factory building in certain parts
of
the country, but the clause
was
later dropped.
4Although the Areas had
only
one-sixth
of
the national total
of
insured workpeople,
they received nearly cne-quarter
of
the total number of war factories.
___._______
B
19
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