HC Deb 22 January 1963 vol 670 cc23-4
33. Mr. Willey

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what reply he has sent to the communication of the council of the county borough of Sunderland calling for requisite measures at an early date, to fix interest rates at a substantially lower level, so as to reduce rents.

Sir K. Joseph

I have told the Council that the Government do not accept that housing loans should be made available at less than the prevailing rate of in barest. I have also said that, provided subsidies go to those in need, it should be possible to continue building without having to charge rents in excess of what tenants can reasonably be expected to pay.

Mr. Willey

Is the Minister aware that the burden of interest rates has increased by £1 million since 1951 and that this is a very heavy burden upon Sunderland? In view of the present increasing unemployment in Sunderland, will he discuss this problem with Lord Hailsham and see whether it is possible to arrange for the provision of more favourable interest rates for those authorities, such as Sunderland, which are facing difficulties?

Sir K. Joseph

I do not think that the rate of interest is the difficulty here. The average rent in Sunderland is 23s. 8d. a week, and even in the conditions prevailing in that part of the country that does not seem to me to be a crippling level of rent.

Mr. M. Stewart

Will the Minister keep an open mind on this matter? Is he aware that some Federal aid for housing in the United States takes the form of favourable rates of interest? There is nothing administratively impossible about this, and it would be a great help to many local authorities.

Sir K. Joseph

I do not think that I have ever said that it would be administratively impossible, but I have said that the subsidy, the differential rent scheme and the rent rebate scheme should be the principal instruments by which the poorer people are enabled to have decent housing.

Mr. Willey

Will the Minister at any rate try to appear to be a little less doctrinaire and tell the House that he is willing to discuss this matter with Lord Hailsham?

Sir K. Joseph

I am willing to discuss the question of Sunderland rents with Lord Hailsham, but I do not want to mislead the House and give the impression that there is any special interest rate for housing in the wind.