§ 30. Mr. Callaghanasked the Minister of Housing and Local Government and Minister for Welsh Affairs what estimate he has made of the effect of the increase in Bank Rate on rehousing in the city of Cardiff, in view of the fact that the city council has suspended housing loans to would-be purchasers, with a consequent hold-up in housing schemes; and if he will make a statement.
§ Mr. BrookeI understand that the city council has not taken any decision as to its future lending policy. The council intends to review this in September and will not consider any fresh applications for loans in the meantime. There is no reason why would-be purchasers should not approach building societies.
§ Mr. CallaghanIs the right hon. Gentleman aware, as he must be, that the sub-committee of Cardiff City Council—if not the council itself—has refused to entertain further applications for loans, except on the part of applications that have already been made? Is it the Minister's view, and his desire, to encourage loans under the 1959 Act or to discourage them in view of this panic measure?
§ Mr. BrookeI do not think that Cardiff City Council has taken a panic measure because it decided not to endorse a decision of its sub-committee. It is the decision of the city council that matters. Most local authorities in Wales, so far as I know, are carrying on. Cardiff City Council has decided to pause and not to reach any future decision as to policy until September.
§ Mr. CallaghanI hold in my hand a cutting from a local newspaper which says that until 6th September no new applications for loans will be considered but that those in hand might be granted mortgages. The right hon. Gentleman must realise that the process of buying and selling is going on all the time and that the effect of this measure will be to stop a number of transactions which are now reaching maturity.
§ Mr. BrookeI am not responsible for a decision of the Cardiff City Council. It has not taken a long-term decision but has decided not to entertain any further 1139 applications during the month of August and to reach its final conclusion in September.