That's Entertainment: Industrial estates

Andratx is to get an industrial estate. Lucky old Andratx. Or should that be unlucky old Andratx?

The good news is that it might not be built because of land restrictions. The bad news is that the town hall is looking at how it might be able to sidestep by-laws.

Why my negativity? Haven't I often spoken of the need for greater diversification in the Mallorcan economy? Haven't I even spoken of industry being a potential source of tourism? I have indeed. The need for diversification is unquestionable, and around Andratx there is relatively little by way of industrial activity. So shouldn't I be all in favour of an industrial estate?

In theory, yes. It is not a case of being against an industrial estate but of being highly suspicious as to what might end up on it. Industrial estates have become a misnomer, as they are littered with anything other than industry.

Part of the reason why Andratx wants an industrial estate is that it does have some light industry but it clogs up parts of the town and port. Far better, therefore, to put it all in one place, thus easing congestion and offering better facilities for the light industry. However, it's the nature of this light industry that had me shaking my head. Carpentry, metalwork, small construction firms; much of it is of the small workshop-type business, and it is just this sort of business that has been leaving industrial estates elsewhere in Mallorca in droves.

Mallorca's local industry has suffered badly by comparison with other parts of Spain. A decline of some 30% in industrial activity in the five years up to 2010 was way higher than elsewhere, the 30% drop more or less equating to the 30% that is said to be how much more expensive it is to produce in Mallorca than much of Spain.

The greater cost of production and the fall in industrial activity are not solely due to higher transport costs; the Canary Islands, by contrast, haven't suffered to anything like the same extent as Mallorca. One factor that has been critical has been the cost of industrial land; twice as much as the Canaries, for example, or six times as much as Aragon on the mainland. And key to the cost of industrial land in Mallorca have been speculative developments and speculative property acquisition.

Take a look around some industrial estates, and you come to appreciate that they don't necessarily exist to aid industry; small industry especially. As you enter one of Inca's estates, what do you see? Car showrooms, one for Honda power tools and equipment, an office building for a major hotel chain, Garden. It is not untypical. Banks have colonised industrial estates, as have entertainment centres which can even include the ambiguously monikered "alternative" clubs. Part of Inca's third industrial estate will be set aside for entertainment. Why?

The reason is very simple. The level of speculation has driven the cost of land up to such an extent that the only businesses that can afford them are the bigger businesses or those that can generate good profits, and so I have to assume that "alternative" clubs can do just that.

According to the Chamber of Commerce, at least 20% of industrial land on Mallorca is in fact used for commercial purposes, and this percentage will vary significantly from town to town and estate to estate. The figure is probably on the conservative side, as it has also been reported that entertainment centres have gobbled up so much land that should have been for industrial purposes that only some 3% is available.

One has to treat this figure with some caution, as there are estates which are under-utilised and always have been, something they might wish to consider in Andratx. Nevertheless, and though economic hard times have clearly played their part, it is the sheer cost of the land that has resulted in plots being unoccupied or in businesses abandoning estates; and the small businesses, the carpentry and metalwork concerns and such like, have been the ones to the fore in getting out.

So Andratx is to get an industrial estate. Good for Andratx. Or is it good for speculators? Unless the town hall were to find some mechanism whereby land could be affordable, its wishes to have its small businesses transfer will probably be thwarted. These businesses might be well advised to stay put, and if they do, then the industrial estate will have achieved nothing. Congestion won't have been alleviated and there will be a part of the town that is given over to showrooms and entertainment.

Any comments to andrew@thealcudiaguide.com please.