HC Deb 11 March 1964 vol 691 cc430-1
33. Mr. Gourlay

asked the Secretary of State for Scotland how much was paid in interest on the capital debt in respect of local authority housing; and what was the average rate of interest charged for the financial years 1950–51 and 1962–63, respectively.

Mr. Noble

The available information, for the years nearest to those asked for by the hon. Member, is that the total interest paid in 1951–52 was £7.3 million and in 1961–62 £29.2 million. The estimated average rates of interest on outstanding housing debt were 3 per cent. and 4.9 per cent., respectively.

Mr. Gourlay

Do not these figures clearly demonstrate the reason which the right hon. Gentleman is using to compel local authorities to increase municipal rents? Will the Government now take steps to reduce this enormous sum being paid annually to the financial moguls of this country? Alternatively, will the Government increase the housing subsidies so that local authorities in Scotland can let houses at rents which the workers there, who receive a lower average wage, can reasonably afford to pay?

Mr. Noble

I do not think the problem is as simple as that. Many other factors enter into it. The cost of houses has risen. Wages in the building industry have risen by 100 per cent. There may well be factors in the housing deficits of local authorities which might be helped if they took a more realistic view.

35. Mr. Manuel

asked the Secretary of State for Scotland how many local authorities have had their housing subsidies reduced to £12 per year per house.

Mr. Noble

My answer to the hon. Member for Kirkcaldy (Mr. Gourlay) on 4th March shows that 33 local authorities have qualified for the £12 rate of subsidy. Of these, three subsequently qualified for the £32 rate of subsidy in respect of later houses.

Mr. Manuel

The Secretary of State will agree that this is a large number and that the slashing decrease in the housing subsidies is severely affecting local authorities in areas of high and persistent unemployment. Is he aware that the situation in these areas makes it impossible for local authorities to cope with the housing problems because of the reduction in the subsidies and that they can recoup these amounts only by increasing the rents.

Mr. Noble

But the remainder of my answer to the hon. Member for Kirkcaldy also stresses that 39 authorities have had a substantial increase in basic subsidies and that these basic rates of subsidy are determined annually on the basis of the financial resources of individual authorities. Out of 40 authorities which have had their claims settled for the current year, 24 are getting subsidies ranging between £32 and £48.

Mr. Manuel

Did the right hon. Gentleman find out in which areas of high and persistent unemployment there had been a reduction to £12 from £32?

Mr. Noble

Not in detail.