§ 6. Mr. Osborneasked the Minister of Housing and Local Government whether he is aware that building costs have risen by 40 per cent. since 1948, as stated recently by the Stevenage Corporation; what is the reason for this; and what have been the increases in wages and materials, respectively.
§ Mr. H. MacmillanI think the most authoritative report on building costs yet published is that of the Girdwood Committee, to which I would refer my hon. Friend.
§ Mr. OsborneI am much obliged to the Minister for referring me to the Girdwood Report, but I have read it. Does he hold out any real hope of stopping these fantastic increases?
§ Mr. MacmillanI am always trying to secure a fall in costs. Perhaps the most hopeful sign is the fall of nearly a month in the period which it takes to build a house in 1952, as compared with 1951. If we can get quicker building and quicker completion that will be a form of reduction of costs.
§ Mr. SparksIs it not a fact that a very considerable portion of the increased cost is due to the rise in interest rates? In order to try to keep down costs, will the Minister give an undertaking that the rate of interest will not be increased in future to development corporations?
§ Mr. MacmillanThe fall in respect of timber and labour played a far bigger role. The fall in the price of timber has had a far bigger effect than any rise in interest rates.