HC Deb 17 July 1963 vol 681 cc508-9
20. Mr. Manuel

asked the Secretary of State for Scotland what consultations he has had with local authorities' associations regarding his proposals to increase the authorised land prices for new town development from approximately £150 per acre to £1,000 per acre.

Mr. Leburn

Consultations are in progress with the Association of County Councils in Scotland about the revision of the formula under which prices are calculated for transactions between local authorities and new town development corporations. The hon. Member's figures can only be speculative for the effect of the proposal now under consideration would vary from time to time and from transaction to transaction.

Mr. Manuel

Will the hon. Gentleman recognise that the proposals mean a substantial increase in development land prices within the area of new towns of as much as at least 300 or 400 per cent. and probably more? Is he further aware that this will substantially increase the cost to local authorities affected of schools and factories and social amenities necessary to the area? Can he tell the House what profit per acre the Secretary of State will make on the original price which he paid for this land?

Mr. Leburn

I think that the hon. Member misunderstands these proposals to some extent. There is a natural and inevitable increase in land values in rapidly developing areas such as new towns and at present, without special arrangements, local authorities buying land for a development corporation would have to pay the full market value. The consultations concern the extent of the concessions below that value to be made in the local authority's favour.

Mr. Manuel

The hon. Gentleman is not answering the question. What percentage profit per acre is the Secretary of State making on land which he secured when the development corporation was formed?

Mr. Leburn

In my original Answer I said that I could not give that figure because it would vary from transaction to transaction.