HC Deb 06 June 1944 vol 400 cc1203-5
56 Mr. Kirkwood

asked the Chancellor of the Exchequer (1) if, in connection with post-war housing plans, he will consider the creation of a special fund from which the capital cost of house-building could be advanced to local authorities free of interest for a term of 60 years and housing subsidies thus abolished;

(2) if, in view of the necessity of the State 'borrowing money cheaply so as to be able to lend it interest free to local authorities for the purpose of building houses, he is providing in his post-war plans for the establishment of an investment board to control the flow of savings to finance these activities which will be most beneficial to the people of the country;

(3) if the National Savings Committee is preparing plans or the encouragement of saving after the war; and if in this connection priority will be given to a House the People campaign, with a view to the capital cost of building houses being loaned to local authorities interest free.

Sir J. Anderson

Methods are being considered for securing such priority as the public interest may require in the financing of post-war capital expenditure for various purposes and also for the encouragement of National Savings after the war. It is also the intention of the Government to maintain a cheap money policy by which local and other public authorities will benefit. Apart from that, however, I think that such assistance as it may be agreed that the State should afford to local authorities for housing should be brought openly to the notice of Parliament in subsidies met out of Votes and should not be in the concealed form of concessions on rates of interest.

Mr. Stokes

May I ask the Chancellor of the Exchequer whether he has any fundamental objection to the issue of interest-free loans for the purpose suggested in the first Question?

Sir J. Anderson

The hon. Member has asked that question again and again, and I really do not think it arises here.

Mr. Mathers

Do the Government recognise that, by adopting means of this kind to stimulate housebuilding in this country, they will be giving the best evidence of their earnestness in the matter?

Sir J. Anderson

No, Sir, I do not think so. An open subsidy is more impressive than a concealed one.

Mr. Gallacher

Is the Chancellor aware that subsidies generally come in small pieces at a time; and is it not desirable, in view of the crisis which affects housing, that a fund should be allocated by the Government for the purpose of providing interest-free loans to local authorities, so that there shall be no doubt whatever as to the resources for building houses?

Sir J. Anderson

I do not think that there is any doubt whatever in the mind of anyone who is concerned in this matter as to the availability of funds, but it is a fallacy to suppose that a subsidy is avoided by providing loans free of interest, or at reduced rates of interest; and as to subsidies, they are given on terms that are well understood by local authorities, and not a little at a time.

Mr. Kirkwood

Is the Chancellor of the Exchequer aware of the fact that 6o per cent. of the cost of houses to-day goes to the money-lender who lends the money with which to build the houses; and what action is he prepared to take to abolish the idea of interest?

Sir J. Anderson

I do not think that the idea of abolishing interest can be brought about merely by talking about it. What the Government are doing, as I said in my original answer, is to endeavour to maintain the cheap money policy, and that is the best method of keeping the cost of capital works down.

Mr. Kirkwood

Is the Chancellor of the Exchequer aware of the fact that our soldiers give their all for their country—that is free of interest—and is it too much to ask that those who own and control the means whereby we live should lend their money free of interest, in order to get over this particular problem?

Sir J. Anderson

That is surely fallacious; lending is as widespread as national service.

Mr. Stokes

Not without interest though.