HC Deb 01 August 1961 vol 645 cc1127-9
21. Mr. Skeffington

asked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he is aware that most of the capital programme of new town local authorities is aimed at providing facilities already possessed in more established areas; and what is his policy towards loan sanctions for these local authorities, in view of Her Majesty's Government's present economic policy.

Mr. Brooke

I appreciate the problem facing the new town local authorities in providing facilities which established towns already have. They are doing a good deal already, and will continue doing so; but in order to help the country out of its economic difficulties I may have to postpone loan sanction for some projects which seem not as urgent as others.

Mr. Skeffington

Would the right hon. Gentleman not agree that the new towns have done remarkably well, having done a tremendous amount in a short time, but that as a result, and because of the need to keep up with comparable localities elsewhere, it will be a very great hardship if their development schemes were to be unnecessarily restricted? Will he try to temper the wind as much as possible in this connection?

Mr. Brooke

I certainly appreciate that the new towns are in a very special position. Nevertheless, even in the new towns there are different degrees of urgency of need.

22. Mr. Skeffington

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what effect Her Majesty's Government's present economic policy will have on the work of the new town development corporations; what guidance he has given to the corporations on their future development proposals; and what is his policy towards future proposals for grants under Section 11 of the New Towns Act, 1946.

Mr. Brooke

I expect the present steady progress to continue, but I shall be asking established development corporations to keep within their current level of expenditure, and to make savings or to postpone less urgent projects where they can. My policy on contributions by development corporations towards expenditure by local authorities will not be changed, but authorities will very likely postpone some projects which, though desirable, cannot be regarded as essential in present circumstances.

Mr. Skeffington

While thanking the Minister for one part of that Answer, might I remind him that, on preliminary figures, some of the new town corporations are likely to face a fairly serious juvenile unemployment position in two or three years? Therefore, when looking at these schemes, will the right hon. Gentleman do nothing to stop the capital development of new factories and new place of employment?

Referring to Section 11, may I ask the Minister to realise that the rates of the new towns are often above average, largely because of their having had to embark on capital expenditure during periods of high interest rates? Will he also bear that in mind so that the new citizens in the new towns will not have too great a burden put upon them?

Mr. Brooke

I will certainly bear in mind what the hon. Gentleman has said. Of course, the rateable value of the new towns is mounting rapidly.