HC Deb 05 July 1962 vol 662 cc680-1
20. Mr. Frank Allaun

asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will state the principal reasons for the reduction in council-house building last year to 93,000 houses and flats in England and Wales; and what steps he proposes to take to stop this continued fall.

The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. Geoffrey Rippon)

The number of completions last year was mainly limited by the slowing down in building caused by the overload on the industry. There has already been some improvement as a result of the measures taken by the Government.

Mr. Allaun

Is the hon. Member aware that this is the lowest number of council houses built since 1947, and that the main reason is not the one he has given but the exorbitant interest rates which councils have to pay? Many of the councils visited recently by his right hon. Friend have stated that the Minister's proposals are no good unless interest rates are reduced.

Mr. Rippon

The hon. Member is quite wrong. The main reason is the one I have given. The trouble last year lay in the slowness of building, which was shown by the fact that only 79 council houses were completed for every 100 under construction at the beginning of the year. That was the reason for the Government telling local authorities to concentrate on completions if they wanted to get good results.

Mr. M. Stewart

Is the hon. Member aware that the decline last year as compared with 1960 was only the last stage of a steady decline which has been going on many years? If he studies the matter he will not be able to avoid the conclusion that interest rates are one of the major causes. Does he regard this decline over the years as desirable, or does he want to get back to something like the figure we had 12 or 15 years ago?

Mr. Rippon

No one suggests that the figure of 93,000 is anything like sufficient to meet the accepted priorities. That is why we have been urging local authorities to have realistic programmes. I have answered the Question put to me by the hon. Member for Salford, East (Mr. Frank Allaun). Interest rates are another matter.

Mr. Stewart

Granted that 93,000 is unsatisfactory, has the hon. Gentleman any idea of what ought to be the figure of building?

Mr. Rippon

One has to look at the programme of each authority and determine it on its merits.

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