HC Deb 18 June 1963 vol 679 cc210-2
11. Mr. Short

asked the Minister of Housing and Local Government and Minister for Welsh Affairs on what grounds he has refused loan sanction for three large housing developments in Newcastle-upon-Tyne; and why his decision was not communicated to the local authority before being made public by the hon. Members for Newcastle-upon-Tyne, North (Mr. R. W. Elliott) and Newcastle-upon-Tyne, East (Mr. Montgomery).

26. Mr. R. W. Elliott

asked the Minister of Housing and Local Government and Minister for Welsh Affairs why he refused loan sanction to the Newcastle-upon-Tyne Corporation for the building of three blocks of flats in the city.

Sir K. Joseph

I was not satisfied that the tender which the council wished to accept would give it the best value for money it was in a position to get. I wrote to my hon. Friends informing them of the decision on the evening of the day on which the decision was put into the post to Newcastle.

Mr. Short

In view of the reply, and leaving aside the question of planning permission, which is a technical point on which the right hon. Gentleman may have a case, will he confirm that the essential difference between him and the council is one of judgment—his judgment and the judgment of his advisers against that of the council and its advisers—as to whether or not this particular scheme was the best bargain for the city?

On the second point, is the right hon. Gentleman aware that it took seven months to decide this matter and that he sent a reply finally to the Corporation and his two hon. Friends on the same day, according to his letter to me, in the hiatus which occurred between the council election and the calling together of the committees when the town clerk was rightly precluded from showing the letter to any members of the Corporation who have had the legal responsibility for this matter? Does the right hon. Gentleman think it right that they should have to read of this in the newspapers?

Finally, in view of the fact that the case has now been accepted, will the right hon. Gentleman undertake to expedite this matter and do all he can to get it through as quickly as possible so that we get these 300 families rehoused?

Sir K. Joseph

First, I made the decision because I thought that local authorities were not getting value for money. Secondly, I make no apology for the time taken. It is a very serious matter for a Minister to use this power in this way. Thirdly, I am not accountable for what happens to letters after I have sent them. Fourthly, I will certainly undertake to expedite any decision called for from me.

Mr. Elliott

Is my right hon. Friend aware that the letters which he sent to my hon. Friend the Member for New-castle-upon-Tyne, East (Mr. Montgomery) and myself were not made public until three or four days had elapsed, during which time the local council could, if it wished, have made its letter public? Would my right hon. Friend further agree that the people of Newcastle have the right to be fully and frankly informed on matters which affect them? Is he further aware that the original doubts on this scheme emanated from genuine concern about the disposition of large sums of money? Is he aware, finally, that only a full and frank public inquiry will allay the great local doubts on this matter?

Sir K. Joseph

I doubt whether it is for me to make a decision on any of those questions at the moment.

25. Mr. Montgomery

asked the Minister of Housing and Local Government and Minister for Welsh Affairs on what date he made known his decision to refuse the Newcastle-upon-Tyne Corporation loan sanction for its proposal for three large housing schemes.

Sir K. Joseph

My decision letter was sent to the council on 22nd May, 1963.

Mr. Montgomery

Would my right hon. Friend agree that if there are complaints that the turning down of the loan sanction has held up our housing in Newcastle, it is largely due to the fact that the city council accepted a bad bargain, and if he has no power to institute a public inquiry into the matter, could he not recommend to the city council that it should itself have an inquiry so that the air can be cleared over this subject?

Sir K. Joseph

We must alt regret any delay in the provision of housing, and I hope that any delay will be kept to the absolute minimum. I shall play my part in that.