HC Deb 20 June 1973 vol 858 cc677-9
26. Mr. Horam

asked the Secretary of State for the Environment if he is satisfied with the number of tenders for new council house building schemes.

Mr. Eyre

Some authorities have encountered problems in obtaining tenders, but the number of dwellings in tenders accepted by local authorities in England and Wales in the first four months of 1973 was 23 per cent. up on the same period last year.

Mr. Horam

Is the Minister aware that throughout the country families are having to live amongst the muck and rubble of demolition because local authorities cannot get tenders for the building of houses to rehouse them? In Gateshead, three major schemes attracted tenders only from the public works department, which the Government did not allow because they were above the cost yardstick. Will the Minister do something urgently about these problems?

Mr. Eyre

If I may refer to the hon. Gentleman's constituency, my Department is in touch with the council about the three schemes with which there were difficulties. I hope that we shall be able to resolve those difficulties so as to enable competitive tenders to be obtained, so that all three schemes can go ahead.

Mr. Leadbitter

Is the Minister aware of the survey of the North-East, which I placed before his right hon. and learned Friend and which contained evidence that because of the unit cost yardstick local authorities cannot build council houses? The unit cost yardstick argument has gone on long enough. Is not the Minister aware that representations from all parts of the United Kingdom have been made to him, his Department and the Government to consider a new unit cost yardstick that will enable local authorities to get on with their building needs?

Mr. Eyre

As the hon. Gentleman knows, considerable efforts are being made to try to solve his local problem. I ask him to realise the large volume of house building that is being undertaken by the building industry, particularly in his region. There has been an enormous increase in the amount of work done under the house improvement grant scheme—the number of grants has doubled in comparison with last year—as well as all the new house building in the public and private sectors.

Mr. Robert C. Brown

Is the hon. Gentleman aware that in the Byker area of Newcastle people are living in abject misery because redevelopment is being held up by the cost yardstick problem? This is not a political issue—the council is Tory-controlled. I know that the building industry is heavily overburdened with revitalisation, but will the Minister accept that the cost yardstick is the main problem and get down to it?

Mr. Eyre

We should like to get that building work moving ahead as rapidly as possible. The hon. Gentleman has been good enough to refer to the tremendous demands being made upon the industry. He knows that last November we introduced this special market allowance to give some flexibility to these negotiations. Against the background of this difficult situation we are placing a large number of contracts.