HC Deb 21 June 1973 vol 858 cc850-1
8. Mr. Stratton Mills

asked the Secretary of State for Northern Ireland if he will make a statement on his discussions with the Building Societies Association in relation to the problems arising under the house purchase scheme, so as fairly to apportion between the owner and the building society the moneys received in relation to each house where the valuation is substantially less than the original purchase price.

Mr. David Howell

I am not yet in a position to make a statement. Discussions with the Building Societies Association are continuing.

Mr. Mills

I am sure that my hon. Friend recognises that a major social problem is involved here. Does he recognise that the scheme prepared by the Housing Executive, which is a great step forward, is very much in the nature of a salvage operation to help people who, through intimidation and other circumstances, are in a most difficult position? Does he accept that it would be unsatisfactory if the building society or the mortgagee had to take the full amount of compensation, which might be less than the current valuation of the premises, due to these entirely unsatisfactory conditions? Will he undertake that if a voluntary scheme cannot be prepared the Government will consider some form of legislation?

Mr. Howell

I am very much aware of my hon. Friend's concern in this matter. As he knows, the intention of the scheme is to relieve cases of acute hardship and offer help to those who have been deprived. It is not a scheme for full compensation for loss, nor could it be. I take the point about the difficulties of building societies. This is a complex matter. Discussions are going on and I think that they must be allowed to continue. However, we are aware of the urgency of the problem.

Mr. Orme

Is the hon. Gentleman aware that the Opposition have had representations from deputations and a great deal of correspondence about the situation that is developing, particularly in the Belfast area? We support the representations that have been made by the hon. Member for Belfast, North (Mr. Stratton Mills). Will the Minister consider this issue sympathetically.

Mr. Howell

I appreciate the point that has been made by the hon. Gentleman. I shall certainly do so.

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