UK Parliament / Open data

Business Rates

Proceeding contribution from Mike Penning (Conservative) in the House of Commons on Monday, 15 June 2009. It occurred during Opposition day on Business Rates.
I ask the new Minister for Regional Economic Development and Co-ordination to listen carefully to the points that I will make. In an intervention, I tried to raise a very serious issue that has a massive effect on the business community in my constituency. It has to do with empty property rates, which have changed so that the exemption from them drops after six months. It is absolutely ludicrous, if not immoral, that businesses that have no choice—none at all—but to be outside their premises should be caught by the rates on empty properties. In my constituency, the main reason for that happening was the Buncefield disaster that took place in November 2005. Lord Newton, who did the best that he could in the inquiry undertaken on behalf of the Government and the Health and Safety Executive, said in his conclusions that there needed to be a special economic status for places such as Hemel Hempstead, which was badly damaged by a disaster that was not its fault. Through no fault of their own, businesses were literally blown out of their premises. Some of the businesses have actually demolished their premises—levelled them off—so that no business rates are due. The sites are lying fallow. Nothing will be built on them until after the civil case before the High Court is heard, and until the criminal prosecution has taken place. I will not talk about that, because those matters are sub judice. The premises of businesses that do not have the money, or whose insurance companies have not paid out, are sitting there, derelict. 3Com is a good example; its premises are in the middle of my constituency, right next to Buncefield, and they are completely derelict. The company is liable, believe it or not, for business rates. The disaster took place in 2005; we are now entering the summer of 2009 and it is not the companies' fault that they cannot return to their premises. It is not the fault of my local authority, which has done a fantastic job in helping businesses to get back into some of the premises. It is the fault of some of the insurance companies, which were, frankly, slow or belligerent in paying out. However, the biggest problem is that we still have two huge court cases going on—one for compensation, and one a criminal prosecution. The businesses are stuck; they are in limbo; they cannot move back into their premises. Obviously, some businesses are paying business rates, rent, and mortgages on new properties. The insurance companies have helped out with the new capital costs, but the businesses are liable to pay business rates on premises that are derelict, and they cannot move back into them. Some of them are not willing to move back into their premises simply because they have a duty of care to their employees, and they are not happy about moving back in until the Government have made decisions about the safety of premises that surround oil depots such as Buncefield—the recommendations are yet to be made—and until the two court cases are concluded. Surely, in such a debate, the Minister could have said, when I intervened, that it was difficult to answer my question straight from the Dispatch Box. Instead of ignoring my intervention, she should have done me the courtesy of saying, "I will write to you about the matter; it is a very specific issue." Instead, very unusually for the Minister—I have worked with her before—she completely ignored my intervention, which was on an issue that means a huge amount to my community and for business confidence in my constituency. Our enormous plight cannot be ignored. There is a recession going on, and there is a blight on my local business park. That is not our fault; it was the fault of the oil companies, from whom we are trying to get compensation. In the meantime, I would have thought that a little help from the Government would not have gone amiss.
Type
Proceeding contribution
Reference
494 c119-20 
Session
2008-09
Chamber / Committee
House of Commons chamber
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