§ 21. Mr. Archerasked the Minister of Housing and Local Government whether he will seek powers to control the practice of some local authorities of reducing the sum payable to owner-occupiers upon the compulsory acquisition of their property when they are rehoused in council accommodation.
§ Mr. MacCollThe basis of compensation is laid down by statute and no person is obliged to accept less than the amount due on that basis: any dispute as to what this amount is in a particular case can be taken to the Lands Tribunal. My right hon. Friend will consider whether he can usefully send out advice to local authorities on this matter when he receives the report of the Housing Management Sub-Committee of the Central Housing Advisory Committee, which is considering this amongst other questions.
§ Mr. ArcherI thank my hon. Friend for the latter part of that Answer. Does he agree that if the private landlord were to exact key money in this way he would very properly face prosecution? Does he consider it right that a person of very moderate means should be deprived of a substantial part of his savings as a fee for the allocation of a council house?
§ Mr. MacCollBroadly, I agree with my hon. Friend. However, I ought to point out that councils are not obliged to provide council houses for dispossessed owners if they are satisfied that suitable alternative accommodation is available privately.
§ Mr. Graham PageWhy does the Parliamentary Secretary have to wait for further information? Has it not become a scandal in some areas already that local authorities continue to engage in this practice, which is quite illegal?
§ Mr. MacCollI do not think that it is illegal. The reason for waiting is that my right hon. Friend does not have evidence to show that the practice is widespread. It certainly exists in some areas, but I am sure that this Question and Answer will have discouraged local authorities from it.