HC Deb 16 December 1969 vol 793 cc1104-5
3. Mr. John Fraser

asked the Minister of Housing and Local Government why his Department has forbidden local authorities to make loans to co-ownership housing societies.

The Joint Parliamentary Secretary to the Ministry of Housing and Local Government (Mr. Reginald Freeson)

The Department does not wish local authorities generally to duplicate the work of the Housing Corporation, but I hope they will use their powers under the Housing Acts, 1957, and 1969, to make loans and grants to co-operative and other housing associations to buy and modernise old properties. The Housing Subsidies Act, 1967, introduced further substantial financial help for such associations.

Mr. Fraser

I thank my hon. Friend for that extremely welcome answer. Is he categorically saying that local authorities can lend money to co-ownership housing associations for the conversion and improvement of old houses? If so, is he aware that that was not previously the understanding and that his answer will, therefore, be extremely welcome?

Mr. Freeson

I am sorry if this matter was previously misunderstood. It is certainly not only our policy but our desire that local authorities should, as far as possible, help in the growing sphere of housing improvements by way of cooperative as well as other housing associations.