HC Deb 26 November 1957 vol 578 cc972-5
23 Mr. Mitchison

asked the Minister of Housing and Local Government (1) if he will complete, to the latest available date, the table appearing as an appendix to foreword in the Accounts, 1955–56, under the New Towns Acts, 1946 and 1955; and if he will divide the completed total of advances by Minister outstanding so as to show the rates of interest applicable to that total and the average rate of interest so applicable;

(2) what was, at the latest available date in the year ended 31st March, 1957, and at the latest available date since then, the average cost of building, without services, a three-bedroom house for a development corporation in each of the New Towns in England and Wales and the average exclusive or inclusive rent charged for a three-bedroom house in each of those New Towns by the development corporation and by the district council;

(3) what rates of interest on advances under subsection (1) of Section 12 of the New Towns Act, 1946, have been in force from the commencement of that Act until now; for what periods; and what was the total of such advances during each such period.

Mr. H. Brooke

As the Answer includes a number of figures, I will arrange for it to be printed in the OFFICIAL REPORT.

Mr. Mitchison

Is the right hon. Gentleman aware that for once that is just what I hoped he would reply?

Following is the Answer:

The New Town Development Corporations are responsible for fixing their rents, and they are Lot required to keep me informed about the actual or average rents they charge. From the information I have, however, I think it can be taken that

TABLE A
Development Corporation Date of establishment At 31st March, 1957 During the year ended 31st March, 1957
Advances by Minister outstanding Capital expenditure (at cost, less disposals and depreciation) (a) Capital expenditure (b) General Revenue Account Deficiency (c) Ancillary Undertakings Revenue Accounts Deficiency (c)
Land, buildings and ancillary undertakings Miscellaneous capital expenditure
(1) (2) (3) (4) (5) (6) (7) (8)
£ £ £ £ £ £
Aycliffe 2nd July, 1947 5,611,673 5,634,176 583,865 19,910 532(d) 3,604
Basildon 3rd February, 1949 16,159,493 16,262,709 4,413,801 35,743 35,318 123,923
Bracknell 20th October, 1949 7,680,297 7,801,342 1,954,726 155,261 49,174 31,811
Corby 10th May, 1950 4,338,905 4,523,525 1,231,352 4,018 16(d) —
Crawley 26th February, 1947 25,101,767 25,006,323 5,769,395 8,854 15,072 151,364
Cwmbran 24th November, 1949 5,971,418 6,193,869 1,295,972 33,857 14,505 14,665
Harlow 16th May, 1947 26,984,634 27,571,775 5,637,306 33,205 43,473(d) 157,534
Hemel Hempstead. 6th March, 1947 20,703,544 20,871,507 2,700,539 74,573 20,403(d) 83,612
Peterlee 22nd March, 1948 5,899,364 5,999,708 665,100 35,490 9,335 14,134
Stevenage 5th December, 1946 20,027,614 20,018,224 3,312,952 29,804 13,182(d) 155,379
Welwyn Garden City. 14th June, 1948 9,862,288 10,052,236 978,233 41,342 63,324(d) 5,710
Hatfield 14th June, 1948 4,873,351 5,126,819 1,187,898 8,021 18,278(d) 8,845
East Kilbride. 8th August, 1947 12,611,704 12,324,917 1,950,889 62,029 242,647 630
Glenrothes 25th October, 1948 3,885,230 3,783,900 424,995 11,491 59,844 —
Cumbernauld 15th February, 1956 35,500 132,940 106,410 26,530 4,614 —
169,746,782 171,303,970 32,213,433 580,128 430,509 159,208(d) 751,211

(a) Column (4) includes the value of work in progress but not paid for.

(b) Includes administrative costs charged to capital account.

(c) Columns (7) and (8) include interest amounting to approximately £531,750 and £55,234 respectively on expenditure and projects on capital account before the dates of their completion.

(d) Surplus.

the exclusive rent of three-bedroom houses in the New Towns in England and Wales ranges from about 25s. to about 39s. in a few cases more, where the houses have exceptional amenities. I have no information about the rents now being charged by the district councils concerned.

TABLE B

The total advances made by the Ministry of Housing and Local Government and the Secretary, of State for Scotland to the Corporations to 31st March, 1957, at the various rates of interest have been:

Rate of Interest Amount of Advances
per cent. £
3 17,826,080
3¾ 23,610,200
4 32,266,000
4¼ 44,251,685
4½ 2,026,000
5 9,922,000
5¼ 10,221,000
5½ 25,007,137
5¾ 6,622,263
Average rate of interest 4.35 Total Advances £171,752,365

Repayments to 31st March, 1957 total £2,005,583 leaving £169,746,782 outstanding. An analysis of this total of amounts outstanding between the various rates of interest is not readily available, but details for each Corporation are included in Schedule No. 1 of their annual accounts.

TABLE D
Period Rate of Interest Amount of advances issued by Ministry of Housing and Local Government
per cent. £
March, 1947, to 7th November, 1951 … … 3 16,345,950
8th November, 1951, to 8th February, 1952 … … 3¾ 3,473,900
9th February, 1952, to 19th October, 1953 … … 4¼ 37,451,185
20th October, 1953, to 3rd June, 1954 … … 4 17,224,000
4th June, 1954, to 28th February, 1955 … … 3¾ 17,877,300
1st March, 1955, to 8th July, 1955 … … 4 11,478,000
9th July, 1955, to 12th August, 1955 … … 4¼ 2,198,500
13th August, 1955, to 6th September, 1955 … … 4½ 1,850,000
7th September, 1955, to 16th January, 1956 … … 5 9,014,000
17th January, 1956, to 31st March, 1956 … … 5¼ 9,303,000
1st April, 1956, to 8th November, 1956 … … 5½ 13,302,900
9th November, 1956, to 15th February, 1957 … … 5¾ 6,045,500
16th February, 1957, to 12th July, 1957 … … 5½ 15,409,500
13th July, 1957, to 27th September, 1957 … … 5¾ 4,106,000
28th September, 1957, to 22nd November, 1957 … … 6¾ 2,488,000
Total Advances … … £167,567,735