§ 28. Mr. Abseasked the Minister of Housing and Local Government and Minister for Welsh Affairs if he is satisfied that powers are available to recover public funds advanced to a housing association in the event of the housing association erecting flats that cannot be let because of high rents; and if he will make a statement.
§ Sir K. JosephI do not approve schemes under Section 7 of theHousing Act, 1961, unless I am satisfied about the demand for flats or any other dwellings at the rents involved. But substantial powers are available to me both under the mortgage agreement an association has to make with me, and under my statutory power to give directions about the administraiton of an approved scheme and the disposal of assets provided under it.
§ Mr. AbseIs it not clear to the Minister that there are financial responsibilities incurred by the sponsors of housing associations, and is henot aware that in South Wales he is in fact creating funds to endow land speculators who are shedding land at fantastic prices in South Wales for housing associations? Since many of the members who are sponsoring housing associations are linked with landowners, would the Minister not take further precautions to ensure that we do no get high-priced land for flats at high-priced rents in South Wales?
§ Sir K. JosephNo. I reject all of that. My Department, which is experienced in these matters, takes infinite pains 799 to check the competitive nature of the land price, the building scheme, the building costs and the market for the accommodation before any scheme is approved. The protection for the public money is ample.