HC Deb 10 February 1970 vol 795 cc1053-4
2. Sir G. Nabarro

asked the Minister of Public Building and Works, having regard to the 26 per cent. increase in building constructional labour costs now agreed and 11 per cent. to 13 per cent. increase of prices proposed by the British Steel Corporation, what estimate he has made of increased building constructional costs in 1970–72; and whether he will make a statement.

Mr. John Silkin

It is not yet possible to make an estimate of increased construction costs up to 1972. The final overall effect of the recent wage agreement will depend on the contribution to increased productivity which the Government and the industry expect the agreement to make. The rise in steel prices will by itself add an average of about one third of 1 per cent. to overall construction costs: the precise increase will depend on the type of work.

Sir G. Nabarro

Has not the Minister neglected to observe that there are 629,000 people out of work, of whom 525,000 are men, more than half of them over 45 years of age, and more than 100,000 from the building and construction industry? Is he aware that if these men leave the industry they will never return? Will not that raise costs enormously, and to the tune of 5s. in the £ with these other factors, during the next two years?

Mr. Silkin

I do not think that the hon. Gentleman's supplementary question really follows from his original Question. In any event, I would not agree with him.

Mr. Costain

Will the right hon. Gentleman take this seriously? Does he appreciate—it is no good the Minister laughing—that the industry is in a most difficult situation? Does he not appre- ciate that my hon. Friend's Question was right on the point? Is he aware that it is no good his saying that one-third of the cost increase is due to an increase in the price of steel, because so little of the house building industry uses steel? Does he realise that apprentices are not joining the industry? Will he take note of what his hon. Friend the Member for Liverpool, Walton (Mr. Heffer) says if he will not believe us on this side of the House?

Mr. Silkin

The hon. Gentleman should re-read his hon. Friend's Question. He was asking about the increase in building constructional costs as a result of a price increase by the British Steel Corporation. I answered that Question. It amounts to a total of £3 per house, and I would maintain that that is not of very great consequence.

Sir G. Nabarro

On a point of order, Mr. Speaker. In view of the hopelessly unsatisfactory nature—

Mr. Speaker

Notice must be given in the conventional way.

Sir G. Nabarro

In view of the unsatisfactory nature of that reply, I beg to give notice that I shall seek to raise this matter on the Adjournment at the earliest opportunity.