HC Deb 31 January 1945 vol 407 cc1445-9
34 and 35. Mr. Key

asked the Minister of Works (1) what is the exact cost as delivered on sites of the Uni-Seco prefabricated houses now being erected in certain London boroughs; the cost of erection; and the total cost excluding only the land;

(2) the exact cost to-day of manufacturing each type of pre-fabricated house which his Ministry has adopted.

38. Mr. Walter Edwards

asked the Minister of Works what his Department estimates the respective cost of each type of pre-fabricated house assuming full mass production on to-day's prices, or under conditions which might rule six months after the end of the war in Europe.

39. Mr. Frankel

asked the Minister of Works the average cost, actual or estimated, of transporting and erecting each type of prefabricated house.

Mr. Sandys

Preliminary contracts are being let for the manufacture and erection of sufficient numbers of each type of house to enable the necessary data to be obtained on which fixed production prices can be negotiated. Until this has been done, I am not in a position to give any figures of cost. The same procedure is being applied to the work of erection except that in this case contracts will normally be placed by competition in each locality. The cost of transport is necessarily dependent upon the distances between factories, depots and sites. Until the allocation of numbers and types between the various local authorities is completed and the location of the depots is settled, no reliable estimate of transportation costs can be quoted.

Mr. Frankel

When does the right hon. Gentleman expect to be able to give us the estimates asked for in this series of Questions?

Mr. Sandys

I am sure the House would not wish to press me to give a snap figure based on insufficient information.

Mr. Frankel

When does the right hon. Gentleman expect to be able to give the figure?

Mr. Sandys

We cannot give these figures until we have more experience in erecting these houses. It is a novel operation. No firm at present could give a firm figure as to what it would cost them to manufacture and erect these houses. As soon as we have a certain amount of experience we can negotiate a fixed price contract, and I shall be glad to inform the House of the result. I cannot say how soon that will be.

Mr. Key

Have half a dozen of these houses been erected in the London region?

Mr. Sandys

They are now working on about three sites.

Mr. Key

Have half a dozen been erected?

Mr. Sandys

I should think about three.

Mr. Key

Is it not a fact that 250 were promised every week, beginning on 1st January?

Mr. Sandys

Not that I know of.

Mr. Gallacher

In view of the urgent need for houses in Scotland, would the right hon. Gentleman arrange for Scottish factories to make prefabricated houses?

Mr. Sandys

There is no ban on Scottish production.

36 and 37. Mr. Walter Edwards

asked the Minister of Works (1) if the increase in costs of Portal and other types of prefabricated houses adopted by his Ministry over the original estimates was due to faulty judgment, over optimism or to not taking into account any important factors;

(2) if there has been any increase in the estimated cost of prefabricated houses; how such increase came about; and how did the original estimates go wrong.

40 and 43. Mr. Frankel

asked the Minister of Works (1) if the original estimates of the Portal type houses approved by the Government were based on prices which might rule after the end of the war in Europe; how does he account for any increase when prices of materials and wages are supposed to have been stabilised; or was it assumed by his Ministry that wages would fall immediately the war in Europe ended;

(2) in view of the fact that earlier statements on the subject always gave the impression that the improved type of Portal prefabricated houses would cost about £600, why it is now announced that the actual cost will be much higher.

42. Mr. Key

asked the Minister of Works if he will give details of the basis on which the original estimates worked out the cost of Portal and other types of prefabricated houses approved by his Ministry.

Mr. Sandys

As my predecessor explained in another place, the figure of £600 was the target aimed at. It applied only to the steel house, and it was based on the assumption that this would be mass-produced in very large numbers and that production would not begin until after the end of the war in Europe. Since then it has been decided not to wait for the end of the German war before starting upon the temporary housing programme. Owing to the fact that factory capacity and materials needed for the steel house cannot at present be made available it has been necessary to adopt entirely different and in most cases less highly prefabricated types, which are not so well suited for manufacture by mass production methods. In addition, under wartime conditions abnormal costs for labour and various other items will have to be accepted.

Mr. McKinlay

In how many instances is the Department using the soggy mass known as Graycrete in the construction of these houses? Is the right hon. Gentleman aware that where it has been used in Scotland it has cost more to make houses habitable than to build them?

Mr. Frankel

Is it not a fact that every statement that has been made on these prefabricated houses by the right hon. Gentleman's predecessor and the Prime Minister used the figure of £600 as being roughly the cost involved? An answer given me last week admitted that, when the cost is shown, it will be very much higher than £600.

Mr. Sandys

If the hon. Member is quoting the answer that I gave him a week ago, he is perfectly correct.

Mr. Walter Edwards

Was the estimate of £600 per house after the end of the war with Germany based on the assumption that wages in the building industry were going to be reduced?

Mr. Sandys

There was no assumption of that kind. There are certain additional labour costs in war time due to the Essential Work Order and certain other additional costs. But, by and large, the reason for the anticipated increase in the cost of these temporary houses is that we are now making different types of houses under different conditions from those contemplated when the figure was originally announced.

Viscount Hinchingbrooke

In view of the increasing public dissatisfaction with the Portal compared with other types of prefabricated houses, will my right hon. Friend see that it assumes a less important place in the programme than was originally intended?

Mr. McNeil

Does the inference from the answer to the previous supplementary relating to war-time labour costs mean that as soon as the emergency is over the guaranteed working week in the building industry will be withdrawn?

Mr. Sandys

I thought that I made myself clear. It is primarily a question of the additional costs which arise from the Essential Work Order in war-time. There is no wide issue involved.

Mr. Key

Will the increased cost of the temporary houses lead to an increase in the subsidy which the local authorities have expected up to the present moment?

Mr. Sandys

That is a matter which should be addressed to the Minister of Health, but my hon. Friend can be assured that this additional cost will not be passed on to the local authorities.

Mr. A. Edwards

Does the right hon. Gentleman's statement to-day mean that it is finally decided that there are to be no Portal steel houses built in war-time?

Mr. Sandys

As the question has been raised, perhaps I can say that we are aiming at replacing the temporary programme as soon as possible with a programme of permanent house building, employing many of the methods of standardisation and prefabrication developed in the temporary programme. This, I think, will be more economical and more satisfactory. However, I must make it clear that this major change will necessarily take a considerable time to introduce, and in the interval we must, of course, continue to press ahead as fast as possible with the temporary programme.

Mr. Frankel

In view of the unsatisfactory nature of the reply and the importance of the subject, I beg to give notice that I shall call attention to the matter at the earliest opportunity.