§ 7 and 8. Mr. Huntasked the Minister of Housing and Local Government (1) how many local authorities have suspended their home loans schemes as a result of the latest restrictions on funds available for mortgage advances;
(2) what steps he is taking to ensure that local authorities are able to continue to make housing advances in respect of older property for which mortgage facilities are not normally available from commercial sources.
§ Mr. GreenwoodEach lending authority has been given a quota of at least £10,000, and I have asked them to concentrate available resources in assisting the needs of people who cannot get mortgages elsewhere, such as people wishing to buy an older house. I know only one authority which has suspended its loans scheme as a result of the latest restrictions.
§ Mr. HuntIs it not a fact that at least 600 local authorities have had to curtail their loans schemes very severely? When will there be some public expression of apology or regret from the Government for the hardship and heartbreak their mortgage policies are creating?
§ Mr. GreenwoodIf the hon. Gentleman had been present at our very interesting and fruitful debate last week, he would have heard me express regret that we had found it necessary to cut back the amount available for home loans. Within the ceiling of £30 million for England and Wales, it is inevitable that many local authorities should have had their quotas reduced.
§ Mr. MilneWill my right hon. Friend take note of the difficulties of local authorities in special development districts, particularly those trying to attract new industry? Will he give some consideration to their needs and demands?
§ Mr. GreenwoodWe give these problems very careful consideration, but it would be wrong for me at present to start suggesting that there could be concessions in individual cases. When we made the announcement about the general cut-back in January we said, without commitment, that we would review the matter again in July and see what the position of the housing market was.
§ Mr. Graham PageHow can the right hon. Gentleman have the effrontery to mention the paltry sum of £10,000 per local authority? Will he assure the House that it is Government policy to assist local authorities in making these advances when the financial restrictions are removed, and that he sees a useful service by local authorities in making such advances?
§ Mr. GreenwoodIt is Government policy to encourage local authorities to make money available for these purposes within the general overall financial situation that the country faces.
§ Mr. Frank AllaunWill my right hon. Friend press the Treasury before July to reconsider this cut, because it is bound further to reduce the number of new houses started?
§ Mr. GreenwoodI have no doubt that my right hon. Friend the Chancellor of the Exchequer will note the encouraging sounds my hon. Friend has made and give them due consideration.
§ Mr. Grant-FerrisDoes the right hon. Gentleman realise that the Government's policy is absolutely ruining the development of the new town of Winsford in my constituency, and that unless something is done to make more money available all the hard work put in by the present Government and others to make the town a success will come to naught.
§ Mr. GreenwoodI am very sorry to hear the hon. Gentleman say that about Winsford, which has made remarkable and very rapid progress during the past four years under a Labour Government.