HC Deb 06 June 1962 vol 661 cc445-7
13. Mr. Lawson

asked the Secretary of State for Scotland what is now the average cost of a local authority three-apartment house; what would be the annual cost of such a house if payments are spread over the customary 60 years' period; and how this compares with what the annual cost would be if payments were made on a 20-year purchase basis.

Mr. Galbraith

The estimated average total cost of a typical local authority three-apartment house is £2,070. For such a house the annual loan charges in the case of local authorities borrowing at the current Public Works Loan Board rate of 6½ per cent. would be £142 7s. 6d. over 60 years and £190 2s. 6d. over 20 years.

Mr. Lawson

Does not the hon. Gentleman think that it is about time we found some much more reasonable way of overcoming this perpetual piling up of the debt problem that is facing us in Scotland? Cannot we find a way to finance the houses which we so badly need without having to face this continuing problem of ever-increasing debt? Would not it be more reasonable to cut it down to 20 years instead of 60 years?

Mr. Galbraith

It is open to the local authority concerned to do it over 20 years if it wants to. There is nothing to stop a local authority from doing that, but most of them prefer to do it over 60 years.

Mr. Mclnnes

Is the hon. Gentleman aware that the high rate of interest imposed by this Government is the greatest problem which confronts local authorities in the matter of housing?

Mr. Galbraith

I have crossed swords with the hon. Gentleman on this point many times, and I simply do not agree with him.

Miss Herbison

Surely the Minister does not mean what he has just said? If he does, then he is the only person, not only in Scotland but in Britain, who has not realised over a long period that local authorities are finding this interest burden very heavy indeed in their attempt to provide houses. It would be a good thing if the hon. Gentleman learnt the facts of life.

Mr. Galbraith

I think that I could say the same of the hon. Lady. I go about the country quite a lot. I visit various towns which have housing difficulties, and I take care to ask whether this is the problem, and in nine cases out of ten I am told that it is not.