HC Deb 12 March 1957 vol 566 cc955-7
4. Dr. Stross

asked the Minister of Housing and Local Government whether he is aware that in Stoke-on-Trent the building programme of the local authority has been adversely affected; and whether he will take action which will offset the harmful effects of high interest rates.

Mr. H. Brooke

I am aware that the council has fewer houses under construction at the present time than it had a year ago. This is its decision. I have no reason to suppose that financially it is debarred from building whatever houses it needs to build.

Dr. Stross

Is the right hon. Gentleman aware that that is a very unsatisfactory Answer—[An HON. MEMBER: "It is not true."]—that, in fact, the number of houses at present under construction is only half what it was a year ago, while next season's programme will be half of that again, that there are 8 million bricks lying in stock and that unemployment is rising in every aspect of this industry? Is not the Minister ashamed of himself?

Mr. Brooke

I cannot accept the hon. Gentleman's statement that the number of houses under construction is only half what it was a year ago. If the local authority feels that it is financially pressed, surely its first course should be to review its existing rents, which are far below the average of other comparable places.

Mr. Lindgren

Is the right hon. Gentleman aware that not only in Stoke but in the vast majority of local authority areas practically no building for general needs is now proceeding, and that the reasons for that are the unduly high interest rates and the withdrawal of subsidies, which make rents impossible for people to pay?

Mr. Brooke

No, Sir. I do not accept for a moment that there is no building for general needs going on.

Mr. Gibson

Where is it?

Mrs. Slater

Is the right hon. Gentleman aware that he is under-estimating the whole position? Are not many local authorities in the position that the only house building will be for slum clearance, which is a burden on them, and are they not facing the position that they cannot build houses for general needs? We have to say to people on the housing lists, "No houses for you until the situation changes." What are we to do about it?

Mr. Brooke

What the hon. Lady is pressing for is restoration of the general needs subsidy. I am not prepared to impose obligations on the taxpayers in order to enable local authorities who are charging low rents to continue to do so.

Dr. Stross

In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter on the Adjournment at the earliest possible moment.

22. Mrs. Mann

asked the Minister of Housing and Local Government if he will state the total cost of the housing programme for the past five years, and the interest cost thereof over sixty years; and if he will give an estimate of the cost if interest were limited to a thirty-year period.

Mr. H. Brooke

It is not possible to calculate this.

Mrs. Mann

I expected that reply. It is of such momentous interest to the country that we shall never know about it. Is the Minister aware that this is the first time in the history of the Housing Acts that an interest rate of 5½ cent. has been passed on to local authorities, and that the only other occasion on which the interest rate was 5½ per cent. was under the Addison Act, when local authorities were themselves allowed to levy a penny rate and in Scotland a five-sixths of a penny rate only? Will he do something to stop this concealed subsidy which is going to interest all the time?

Mr. Brooke

I tried to answer the hon. Lady's Question, and I must assure her that I was not able to frame an answer, because loans are raised in different conditions over different periods. It was impossible to give her any firm estimate. If she is asking for a restoration of the general needs subsidy, then in respect of England and Wales—and I can speak only for England and Wales—I certainly could not agree to that.

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