The Court of Auditors has released a report stating that the creation of economic activity parks in Wallonia does not align with the region’s economic development vision. The report highlights that land use planning tools for these parks have not been updated in over 20 years and the region lacks control over information on them. The Court also identifies obstacles to economic activity within these parks, including limited reception capacity for large companies and an inflexible stock of available land. The incentive system for these parks is deemed inefficient, and subsidization leaves something to be desired, with incomplete financial monitoring making it challenging to establish the total amount of subsidies allocated. The Court recommends developing a regional strategy, assessing the advisability of increasing the reception capacity for large companies, and identifying ways to reduce the time it takes to make land available.
“The creation of economic activity parks in Wallonia is not part of a vision of economic development at regional level“, estimates the Court of Auditors in an audit sent to the Walloon parliament and made public on Wednesday.
According to this harsh report, the land use planning tools that define the guidelines for these parks have not been updated for more than 20 years. In addition, the Region “does not have sufficient control of information on economic activity parks to enable it to analyze and steer public policy in this area“.
“In the absence of a regional strategy, steering the policy consists of responding to specific problems in the form of priority plans and calls for projects. It therefore relies more on the discretionary power of the government than on a methodological and objective approach.“, asserts the Court.
The latter identifies several obstacles to the development of economic activity within these structures: a limited reception capacity for large companies; an inflexible stock of available land and the lack of access to a centralized supply of land available in Wallonia.
“Inefficient”
The Court further finds “inefficient“the incentive system consisting in granting an increase in subsidy for durable equipment. It also notes that operators do not have the legal tools necessary to recover unoccupied land from companies. “It is therefore difficult for them to meet the objective of increasing the density of business parks, which should also contribute to more sustainable management.“
Finally, the subsidization of these parks also leaves something to be desired, according to the Court, which points to a “incomplete financial monitoring, making it impossible to establish the total amount of subsidies allocated to each economic activity park“. “The creation of these parks constitutes a lucrative real estate activity for the operators. The intensity of the subsidy enables them to make a profit when selling the equipped land to businesses, which remains with them in the absence of a revenue recovery mechanism. Subsidies intended for the equipment of business parks – sometimes granted irregularly – are therefore partly used for purposes other than those for which they were granted“, adds the Court, making a series of recommendations.
These include the development of a regional strategy for the development of these parks; assessment of the advisability of developing the reception capacity for large companies in Wallonia; identifying ways to reduce the time it takes to make new land available or even supporting initiatives to pool infrastructures and services.
In conclusion, the Court of Auditors has brought to light significant shortcomings in the development and management of economic activity parks in Wallonia. The lack of updated policies and insufficient control over the parks have resulted in an inefficient incentive system and inadequate financial monitoring. The Court calls for a regional strategy to address these issues and support the growth of economic activity within these structures. It is hoped that the recommendations offered will pave the way for a more dynamic and sustainable system of managing these parks and ensuring their long-term success.