§ 22. Dr. Brayasked the Minister of Housing and Local Government and Minister for Welsh Affairs what criteria the proposed Housing Corporation will apply in making loans to housing societies.
§ Sir K. JosephI would not like to tie the Corporation's hands by going into detail in advance of the legislation, but the main tests must be whether individual building schemes would be self-supporting and would provide adequate security for the loan.
§ Dr. BrayIf the Minister believes that the Housing Corporation should apply a strictly economic criterion, why cannot the building societies do this? If, on the other hand, the Housing Corporation is to take social considerations into account, why rely on the accident of the formation of housing societies? Surely if the Minister believes that there is a part for a Government Housing Corporation, it must be wholeheartedly social in its objectives, and it must surely be linked with other aspects?
§ Sir K. JosephBuilding societies do not build, but I hope that as a result of all this they will find it infinitely worth while to lend money for this purpose. As for social need, it is just because the Government recognise the need for housing to rent that they are going to set up the Housing Corporation if the House agrees to the legislation.