§ 12. Mr. Buchanan-Smithasked the Secretary of State for Scotland what estimate he has made of the effect on the rate of local authority housebuilding in Scotland of the Scottish Development Department circular 15/69 dated 7th March, 1969.
§ Dr. MabonThere was nothing in this circular to affect the rate of new house-building. The guidance given was that housing revenue account deficits should be allowed to increase only to the extent that permitted rent increases did not enable them to be held level.
§ Mr. Buchanan-SmithIn view of the extra costs through S.E.T. and the high interest rates faced by local authorities, does not the Minister of State realise that there is a restraint in paragraph 12 of the circular? Will he give an assurance, in the light of what he said, that there is no restriction?
§ Dr. MabonI can give an assurance that there is no restriction. The hon. Gentleman should read paragraph 12 1436 again. Any authority that suggests that it should cut back on new house-building for reasons of financial restraint is misunderstanding the situation and taking an easy way out instead of facing up to the problem of rents and rates.