§ 6. Mr. Costainasked the Secretary of State for the Environment whether he is aware of the continuing concern amongst local authorities at the level of the housing cost yardstick; and whether he will introduce a more regular system of monitoring costs than exists at present.
§ Mr. AmeryI appreciate that local authorities are concerned that the yardstick should be kept at a reasonable level. The yardstick is already under continuous review.
§ Mr. CostainDoes my right hon. Friend appreciate that the fact that he is asking for a two-year fixed price contract may be adding to the costs which builders are putting in? Now that the C.B.I, has agreed to a 5 per cent. limit, would it not be more sensible, and result in more reasonable prices, if he adopted the same procedure?
§ Mr. AmeryI am inclined to think that the measures announced by the Chancellor and the recommendations of the C.B.I. will make firm price tendering as 552 a policy a little more acceptable to the industry than it has been hitherto—and that only time will tell.
§ Mr. CantWhile everybody wants to see price restraint in this area as elsewhere, would the Minister not accept that the housing cost yardstick plus the two-year firm price tendering regulations might have a very serious effect on the quality especially of council houses? As these have been leaders in house building, will he keep this under review?
§ Mr. AmeryThis matter will certainly be kept under review and will be watched carefully. So far I see no signs of deterioration in quality or any reluctance to tender.
§ Mr. AllasonAs there is distinct disquiet in the G.L.C. on this matter, may I ask my right hon. Friend to look at the differentials that exist between London and various other areas and try to help at least London?