§ 10. Mr. Channonasked the Minister of Housing and Local Government if he will now introduce the 100 per cent. mortgage guarantee scheme included in the Housing Subsidies Act, 1967.
§ The Minister of Housing and Local Government (Mr. Anthony Greenwood)I am not yet in a position to make a statement about the date of introduction of the guarantee scheme. In any case the scheme cannot be introduced before 1st April, 1968, since the guarantee arrangements are linked with option mortgages which become available on that date.
§ Mr. ChannonThe Government said they were not going to introduce the scheme earlier because there was not sufficient finance. But as building societies are now lending record sums, what is to stop the right hon. Gentleman bringing in the scheme on 1st April along with the rest?
§ Mr. GreenwoodWe said that the beginning of the scheme depended on the economic situation and on the extra burden that it would lay on the building societies and other lending agencies. A record amount of investment is now going into building societies, and advances are also, I am happy to say, at a record level.
§ Mr. RipponWhy cannot the right hon. Gentleman tell the House the date when this scheme will be brought into operation? Will be give an assurance that he will consider bringing it in at the same time as the mortgage option scheme—on 1st April, 1968?
§ Mr. GreenwoodI shall keep this under review. We want to make sure that the building societies will have adequate funds available in order to extend the scheme in this way, and we must also 299 consult them about when it would be convenient for them to incur the heavy extra administrative burden imposed on them by the scheme.