HC Deb 25 April 1967 vol 745 cc1309-11
9. Mr. Frank Allaun

asked the Minister of Housing and Local Government what steps he proposes to take to avoid sellers of land passing on the 40 per cent. levy by adding it to the selling price.

The Minister of State, Ministry of Housing and Local Government (Mr. Frederick Willey)

My right hon. Friend does not think that any action is needed at present. Purchasers have the remedy in their own hands by refusing to pay increased prices, but I have asked the Land Commission to keep a close watch on the situation and he ready to use its powers of compulsory purchase if necessary.

Mr. Allaun

Is the Minister aware that I am grateful for his last few words? Some of us fear that there will be widespread evasion and the defeat of the intention of the Act. Would not the best safeguard be to have far more compulsory purchases by the Commission than is at present expected, since this would mean that the Commission would fix the price?

Mr. Willey

I can assure my hon. Friend that the Commission's powers will be used if necessary.

Mr. Allason

In the Minister's close watch has there been any sign of houses becoming any cheaper as a result of the Land Commission Bill?

Mr. Willey

I have been concerned with land prices, and there has been no sign that they have increased.

Mr. William Price

Can my right hon. Friend tell us of any single tax in the history of this country that has not found its way to the man in the street? Does not he agree that the Land Commission will make nonsense of the Government's pledge to keep down prices, and that the only answer is public ownership of all development land?

Mr. Willey

The landowner has always endeavoured to obtain the highest price from the developer, and he will continue to do so. The Land Commission will see that land is brought forward where required.

Sir G. Nabarro

Is it not a fact that this practice is an inevitable comcomitant of the taxing of betterment values? Would it not be better to abolish the Land Commission and let land find its natural value?

Mr. Willey

It is obvious that the hon. Member has not studied the problem. The House is committed to a levy, tax or charge. The Land Commission has been established to ensure that land will be in supply adequate to meet the needs of development.