HC Deb 12 April 1972 vol 834 cc1234-5
5. Mr. William Hamilton

asked the Secretary of State for Scotland what directive has been issued by him to new town development corporations on the level of house rents.

Mr. Younger

New town development corporations were officially informed in October last year that having regard to the White Paper on the Reform of Housing Finance in Scotland (Cmnd. 4727) they were expected to fix their rents under broadly similar arrangements to those applying to local authorities and with the same limitations on average and maximum increases in standard rents.

Mr. Hamilton

Can the hon. Gentleman tell us what the average increase in the rent is expected to be, whether the directive indicated to the corporations that they were to have an annual increase in rent over the next four or five years, and whether there will be an amendment to their existing rebate scheme or they will be asked to submit to the scheme prepared by the Government?

Mr. Younger

As I said in my original answer, their progression of rents will be the same as that for local authorities—that is, a maximum average weekly increase of 50p in a year with a weekly maximum for any individual of 75p in a year. I understand that the new towns are to bring the rebate schemes into line with the model scheme. This produces substantial reductions in standard rents for those in need.

Mr. John Smith

Will the hon. Gentleman take the opportunity of explaining to the House why he is proposing for the new towns and other local authorities increases in rents related to the needs of the person and his capacity to pay but is not introducing that principle into housing improvement grants? Why not have a means test for housing improvement grants if there is a means test for council house rents in the new towns?

Mr. Younger

I do not agree that the two points are necessarily connected. The question of improvement grants is a separate matter. It is necessary to have a uniform national rent rebate scheme so that all tenants in need may be protected from having to pay a rent they cannot afford. I should have thought the Opposition would welcome such a scheme very warmly.

Mr. Eadie

Is the hon. Gentleman aware that we are informed that the new town corporations had a meeting and decided collectively that they would introduce rents in accordance with the White Paper? Does he not agree that it pays scant regard to the functions of parliamentary democracy that a corporation should seek to implement a Bill before it had become the law of the land?

Mr. Younger

As nobody, not even a local authority, is obliged to do anything before a Bill becomes the law of the land, I cannot see how that is so. The new towns have made their decisions in a sensible way in anticipation of legislation, but they are not obliged to do so until it is law.

Mr. Hamilton

On a point of order. In view of the unsatisfactory nature of the Minister's answers, I beg to give notice that I will seek to raise the matter on the Adjournment.