§ 29. Mr. Frank Allaunasked the Minister of Housing and Local Government and Minister for Welsh Affairs what was the nature of his reply to the resolutions sent to him by the representatives of eighteen north-west county borough and borough councils asking for housing loans at 3 per cent. interest and for a review of housing subsidies.
§ Sir K. JosephI have told these authorities that the Government cannot accept the view that housing loans should be made available at a specially low rate of interest. I have also reminded them that they are already receiving large sums by way of Exchequer subsidies and that by pooling their subsidies, and adopting realistic rent policies, they should be able to continue 189 building without having to charge rents beyond what their tenants can reasonably be asked to pay.
§ Mr. AllaunIs it not ridiculous that throughout the country the more houses councils build the more unpopular they become? Does not this result from the fact that the Government's high interest rates are forcing these councils almost yearly to raise rents and rates to cover about £60 a year deficiency for sixty years on each house they build?
§ Sir K. JosephIf councils choose to be unpopular with the ratepayers in order to be popular with their tenants, by charging less than a reasonable rent, that is their own affair.