HC Deb 11 May 1967 vol 746 cc1681-2
18. Mr. Hamling

asked the First Secretary of State and Secretary of State for Economic Affairs whether he will now take the same power to control rents as he proposes in order to control incomes.

Mr. Frederick Lee

I do not consider that this would be the right course to take. Rents of virtually all private sector housing are already subject to the Rent Acts. As my hon. Friend knows, the rents of local authority houses are not on a profit-making basis and are subsidised to an appreciable extent. Where increases in such rents are necessary because of the financial obligations and circumstances of local authorities, the latter have been urged to make the fullest use of rebates to protect tenants of modest means.

Mr. Hamling

Is my right hon. Friend aware that, notwithstanding the operation of rent rebates, in my local authority area council tenants have had their rents increased three times in two-and-a-half years? Does he not think that this goes completely counter to the Government's policy on prices?

Mr. Lee

This is a question for my right hon. Friend the Minister of Housing and Local Government. My hon. Friend mentioned council houses. That question has a direct relevance to the issue of rates. If we were to have rents pegged, rates would go up.

Mr. Biffen

Since the kernel of the prices and incomes policy is an exhortation, unbacked by Statute, for notification or! increases of either prices or incomes, why on earth cannot the right hon. Gentleman also ask for notification of increases in rents?

Mr. Lee

The answer is that we do. During the period of standstill and restraint a very small number of local authorities, very small indeed, have raised the level of their rents. If the question asked by the hon. Member means that he is asking us to take compulsory powers for notification, we shall take note of his request.

Mr. Emrys Hughes

Is my right hon. Friend aware that farmers' rents increased last year in England by 6.5 per cent. and in Scotland by 6.9 per cent.? What is he going to do about this?

Mr. Lee

We may have to look at the affluence of Scottish farmers and see if we can reduce it in some way.

Mr. Lubbock

Is the right hon. Gentleman aware that the whole basis of acceptance of the prices and incomes policy rests on making it appear fair to the ordinary citizen and that when people who live in council houses see their rents going up substantially while rents in the private sector are frozen, they see that as an inequity which they are not prepared to accept?

Mr. Lee

I accept entirely the first point made by the hon. Member. It is not only a question of being fair; it has to be seen to be fair. I thoroughly agree and we will do everything we can to ensure that. But the hon. Member is quite wrong in saying that, whereas council house rents are going up, others are frozen. I refer him to the Rent Act, 1965. I hope that he will study it.

Mr. Lubbock

I was on the Committee and I know it by heart.