HC Deb 20 January 1970 vol 794 cc246-7
31. Mr. Boyden

asked the Chancellor of the Exchequer if, in view of the need for a sustained and enlarged output of local authority and private housing in the north-east he will take steps to authorise the banks to increase credit facilities to their builder customers in the northern planning region.

Mr. Diamond

The banks have been asked, in carrying out the authorities' requests on lending, to have regard to the Government's policies on regional development.

Mr. Boyden

Is my right hon. Friend aware that the placing of local authority housing contracts in the first nine months of last year was only half what it was in 1968 and that this is having a serious effect on housing policy generally and also on small builders? Something needs to be done to help small builders, otherwise the tap cannot be turned on again quickly.

Mr. Diamond

I am aware of the situation but it does not necessarily follow that credit was the main cause or one of the main causes of what my hon. Friend has described.

32. Mr. Boyden

asked the Chancellor of the Exchequer if, in view of the unemployment in the building industry in the north-east, he will take steps to allow the regional employment premium to operate in the building industry in the northern planning region.

Mr. Diamond

I recognise the seriousness of the problem, but I consider that the cost of my hon. Friend's proposal would be out of all proportion to the benefit in terms of reduced unemployment in the region.

Mr. Boyden

This is another one of the reasons which relate to Question No. 31. Would my right hon. Friend at least consider, and ask the Chancellor to consider when making Budget proposals, some easement on the building industry in the northern region so that it can achieve its task in that area?

Mr. Diamond

I will convey to my right hon. Friend what my hon. Friend said.

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