HC Deb 27 November 1967 vol 755 cc13-4
19. Mr. Eyre

asked the Minister of Public Building and Works whether he will make a statement on the present level of private building activity.

20. Mr. More

asked the Minister of Public Building and Works whether he is satisfied with the present level of building activity in the private sector; and whether he will make a statement.

Mr. Mellish

In 1967 I expect a drop in activity in the private sector of 2 per cent. compared with last year, but I hope there will be an increase in 1968. Taking the construction industry as a whole, I expect demand to have increased by up to 5 per cent. in 1967 over 1966, and that there will be a further increase in 1968.

Mr. Eyre

Is the Minister aware that, comparing 1967 with 1966, in the first ten months of this year the number of private homes built for sale was more than 8,600 fewer than in the same period last year? How does he account for this drastic fall in this important sector?

Mr. Mellish

Questions on individual housing matters should be answered by my right hon. Friend the Minister of Housing and Local Government. Nevertheless, my previous experience tells me that in 1966 there was a drop in private house building starts, and this has had an effect on output for 1967. I hope that the hon. Members knows that the private sector is already picking up. More houses are under construction today than has ever been known before in our history.

Mr. More

Was not the right hon. Gentleman displaying an unjustified confidence when he addressed the Institute of Housing Managers earlier this month? Does he agree that the number of houses in the private sector completed this year is likely to be about 18,000 fewer than in 1964?

Mr. Mellish

I was asked a question about private sector activity in the whole of the building industry. Overall figures will show that the whole building activity of the country will be 5 per cent. up this year. Those are the figures, and the trends indicate that it will be greater next year. If he wants to know how much of this will be represented by housing, I suggest that he asks my right hon. Friend the Minister of Housing and Local Government.

Mr. Costain

Does not the Minister agree that the high rate of bank interest will retard the private sector of the industry?

Mr. Mellish

One of the good things that can help the private sector is the 100 per cent. mortgage. If the Government are able to introduce the 100 per cent. mortgage, as they have power to do under existing legislation, there can be no doubts that the private sector of house building will receive a great incentive.

Mr. G. Campbell

Can the Minister say whether the drop of 2 per cent. in private building applies to Scotland?

Mr. Mellish

Not without notice.