HC Deb 17 December 1969 vol 793 cc1333-5
20. Mr. Costain

asked the Minister of Public Building and Works what further representations have been made to him about the effect on the building industry of the Government's credit squeeze; and whether he will make a statement.

26. Mr. Silvester

asked the Minister of Public Building and Works if he will now make a further statement on his discussions with the construction industry regarding credit difficulties for builders.

Mr. John Silkin

I have nothing to add to my reply to the hon. Members for Hornsey (Mr. Rossi), Clitheroe (Sir Frank Pearson) and Londonderry (Mr. Chichester-Clark) on 12th November, 1969.—[Vol. 791, c. 389–90.]

Mr. Costain

Does not the Minister appreciate what a disappointing answer he has given? Does not he realise that the credit squeeze has caused a serious drop in house building and that as long as the Government insist upon this fraudulent S.E.T., which is costing more than £150 a house, he is restricting much needed house building?

Mr. Silkin

I have on a number of occasions tried to deal with this question, and each time I have said that if I am given personal examples of builders who are facing great difficulties caused by the credit squeeze, I shall be happy to look into them. During the past months I have not received a single notification. While I accept that builders are in some difficulties, and have great sympathy with them, I wish that hon. Gentlemen opposite would give me a little more evidence.

Mr. Silvester

Did not the Minister see a reference in The Times to the N.E.D.C. report on construction, which suggests that the decline in house building will continue and that one of the main reasons for the decline will be the credit restrictions and the financial difficulties of builders? Is not that some evidence for him to consider?

Mr. Silkin

As I have said, I am aware of the difficulties facing builders. Whether those difficulties are caused by the credit squeeze or by a lack of mortgage finance, which from March of next year should not present much difficulty, is often debated. I fully appreciate that house building is not in a perfect situation at the moment, and I am willing to give all the help I can. One practical way in which I have given help is by seeing that my Department promptly pays all its accounts. I wish that this lead were followed generally.

Mrs. Renée Short

As my right hon. Friend is aware of the difficulties, what representations is he making to his right hon. Friend the Chancellor of the Exchequer about the need to reduce the interest rates? If he wants more evidence about the difficulties of the housing industry generally, I suggest that he reads the report of the Estimates Sub-Committee that dealt with housing sub sidies, which was published last Thursday. There is plenty of evidence there.

Mr. Silkin

If my hon. Friend thought that I was after evidence, I have not been as clear as I would have wished. I said that I would like cases to be put to me of builders who had personally been in difficulties because of this, and that I would try to help. I gave an example of practical help by the prompt payment of accounts. On the general position of the Chancellor of the Exchequer, I repeat that builders play their part as members of the community and most of them are patriotic enough to accept this situation. As the economy of the country improves, so I hope will their position.

Mr. Chichester-Clark

Will the Minister say whether either he or his predecessor, in response to requests made earlier this year, has made representations to the Treasury for house builders to be put in the category of priority bank loans, and what was the result of those representations? If those representations were not successful, will he make further representations?

Mr. Silkin

I think the building trades employers are perfectly capable of making their own case, as they have, and very well. Obviously my right hon. Friend the Chancellor of the Exchequer and I consider the matter. But I go straight back to the main question, which is to get the economy straight, and that is a matter for my right hon. Friend.