§ Q7. Mr. Boyd-Carpenterasked the Prime Minister whether the public speech of the Lord President of the Council at Coventry on 8th December, 1967, about Government intervention in the fixing of rents by local authorities represents the policy of Her Majesty's Government.
§ The Prime MinisterYes, Sir. My right hon. Friend's speech indicated that under present legislation the Government have no powers to enforce a standstill on rent increases, but that we have had to consider whether the scale of certain local authority rent increases was compatible in present circumstances with our general prices and incomes policy. This is still the Government's position and that is why we have referred increases in rents of local authority housing to the National Board for Prices and Incomes.
§ Mr. Boyd-CarpenterDoes the Prime Minister recall that his right hon. Friend is reported as saying that the Government were considering amendments to the Prices and Incomes Act so as to give them power to interfere in respect of local authority rents? As this was six weeks ago, if it was a genuine statement 584 of Government policy, when will the necessary Bill be introduced?
§ The Prime MinisterYes. My right hon. Friend is reported as saying that. I read all the reports, and I recognise the one that the right hon. Gentleman has in mind. We have referred a number of increases to the Board, and we are considering the possibility that, if provocative action is taken ahead of its report, we shall certainly be ready to consider introducing legislation.
§ Mr. Frank AllaunSince council rents are so dependent on low interest rates, will my right hon. Friend give the House an assurance that there will be no alteration in the 4 per cent. loans provided by the 1967 Act?
§ The Prime MinisterWe have already made it clear in our review of all these matters of Government policy that there is no change envisaged in the rate of interest provided in last year's Act. My right hon. Friend the Chancellor said that we shall of course look further and over a much longer period at what should be the right financial relationship between the Government and local authorities.
§ Mr. LubbockIs the Prime Minister aware that the Ministry of Housing has informed Councillor McNally, the leader of the Liberal group on the council of the London Borough of Bromley, that the National Board for Prices and Incomes has power to investigate increases other than those specifically referred to it by the Government? In view of the fact that the London Borough of Bromley has imposed increases which are much more than sufficient to balance the housing revenue account, will he see that this matter is referred to the Board?
§ The Prime MinisterI am afraid that the letter to Councillor McNally from the Ministry had escaped my attention, but I will certainly look into it. I think that the position is, as we announced, that where rent increases seem to exceed what is reasonable in relation to the housing revenue account, that is one of the matters which should be and will be investigated by the Board.
§ Mr. HeathDoes not the Prime Minister accept that the scheme whereby 30,000 tenants out of 240,000 will pay 585 lower rents and others who can afford them will pay higher rents, all this to be arranged over a period, as the G.L.C. is doing, is the right approach on this difficult question of rents?
§ The Prime MinisterWhat is the right approach is set out by my right hon. Friend in circulars to local authorities. En addition to the 30,000 tenants mentioned by the right hon. Gentleman, there are 170,000, some of whom will receive very big increases in rents. But my right hon. Friend has referred in the House to a number of cases which have not carried out either what he was saying or what the right hon. Gentleman has just advocated, namely, considering it over a period, but who have done it provocatively at a rate which seems far to exceed the rise in housing costs.