HC Deb 12 July 1966 vol 731 cc1214-7
Q3. Mr. Rippon

asked the Prime Minister what steps he is taking to co-ordinate the responsibilities of the Ministries of Housing and Local Government, Land and Natural Resources and Public Building and Works in regard to land use, housing and the construction industries.

The Prime Minister

I would refer the right hon. and learned Member to the Answer I gave on 17th May to Questions by the hon. Member for Hereford (Mr. Gibson-Watt) and my hon. Friend the Member for Acton (Mr. Floud).

Mr. Rippon

Is the Prime Minister aware that building programmes are falling and costs are rising at a record level? Does he agree that in the next 12 months the cost of a three-bed-roomed house is likely to rise by £150? Would he say what is happening about the clear pledge which the Labour Party gave in its manifesto in 1964 to introduce new machinery to increase the output of the construction industries?

The Prime Minister

The right hon. and learned Gentleman will, I think, be aware that there are abundant signs that the housing situation is improving—[HON. MEMBERS: "Oh."]—that the housing situation is now picking up. I should not like to make any estimates about the cost of a three-bed-roomed house, but I recall that when the surcharge was imposed we were told that it would add £70 to the cost of a house. Perhaps that could be subtracted from any estimate that the right hon. Gentleman makes.

Mr. Costain

Is the Prime Minister aware that the so-called increase in the housing programme is due to houses starting and the reason why housing is starting is fear of the Land Commission Bill?

The Prime Minister

I think that there are signs that the position with regard to both starts and completions will pick up. Concerning the big point made by hon. Members opposite—which I understand—about finance for private enterprise housing which has been lagging, the hon. Gentleman will be glad to know that advances by building societies in June at £70 million were the highest ever recorded.

Mr. Freeson

Will my right hon. Friend bear in mind that major progress is being made in the public sector of housing and that the main reason in many people's minds for the failure in the private enterprise sector is the greatly inflated prices year after year in the sale of these houses?

The Prime Minister

My right hon. Friend has, of course, had discussions with the private builders about building in the private sector. He is willing to give them any help he can, not only to start more houses, but to finish more of those already started. Certainly price is the big factor.

Q4. Mr. Rippon

asked the Prime Minister whether he will give the Secretary of State for Economic Affairs direct responsibility for co-ordinating the housing programme.

The Prime Minister

No, Sir.

Mr. Rippon

Is the Prime Minister aware that the Minister of Housing was reported in The Times of 2nd March as saying that this year well over 400,000 houses would be built? Does the Prime Minister agree that we need to build at least 420,000 houses this year if we are to fulfil the National Plan? Will he agree that something needs to be done to coordinate the activities of his right hon. Friend the Minister of Housing?

The Prime Minister

I do not think that any steps are needed in the matter of co-ordination, not even the lively suggestion made by the right hon. and learned Gentleman in his question. As to the housing programme, we are committed to a programme of 500,000 houses a year by 1969–70. This will mean a progressive increase year by year until that figure is reached.

Q5. Mr. Channon

asked the Prime Minister if he will appoint an additional Minister of State in the Department of Housing and Local Government to deal with the problem of building dwelling-houses.

The Prime Minister

No, Sir.

Mr. Channon

In view of the Prime Minister's last Answer and the fact that he has a target of 500,000 houses a year by 1969–70, is he not at least extremely worried that housing completions for the first five months of this year were nearly 4,000 down on last year? With that rate of progress, how does he hope to reach his target?

The Prime Minister

Certainly, in the public sector a pick-up is being recorded. As to the private sector, there now seems to be no reason why much more urgency should not be shown in completing a lot of houses already started.

Mr. Rippon

Why will not the Prime Minister follow the precedent of the Conservative Government and publish a White Paper explaining exactly how he expects to get these additional houses in the progressive way which he has suggested?

The Prime Minister

If we were to follow the precedent of the right hon. and learned Gentleman's party, when they first increased the housing programme to 300,000 houses a year they stopped all other building, including schools, hospitals and factories. It was in 1952 —[Interruption.] They can look up the facts if they wish. That was their position. The right hon. and learned Gentleman will at least be interested to know that one project to which he gave a lot of his time, and to good effect—namely, the industrialised housing programme—is now going great guns.

Mr. Heath

Is the Prime Minister aware that in a Press hand-out today the Minister of Housing and Local Government has expressed a strong wish to arrest the decline in the number of houses being built and the loss of confidence among house builders? This, therefore, is a confession of failure by the Minister of Housing and Local Government. Will the Prime Minister get rid of him? How does he propose now to meet his target of 420,000 houses this year?

The Prime Minister

That particular target seems to be a target of right hon. Gentlemen opposite. As I have already said, the situation is now improving. Not only have I given the figures of the record lendings, but the latest figures available, to the end of May, show that the amount committed but not yet lent is also al. a record level. So there is really no alibi or excuse any more about the lack of finance for finishing these houses. Since the situation is now picking up, I recommend the right hon. Gentleman to make the most of it while he can.

Mr. Channon

In view of the most unsatisfactory nature of the Answer, I give notice that I will raise this matter on the Adjournment at the earliest opportunity.