HC Deb 16 May 1973 vol 856 cc1503-4
27. Mr. Sydney Chapman

asked the Secretary of State for the Environment if he will make a statement on the current operation of the housing cost yardsticks, including any plans to increase or further vary the differing regional rates.

Mr. Channon

The arrangements introduced last November are designed to enable local authority schemes to proceed at a cost which reflects local market conditions. The special market allowances given, where necessary, for individual schemes provide the flexibility needed in the present tendering situaton. I am keeping the arrangements under close review.

Mr. Chapman

I appreciate that the housing cost yardsticks are more flexible than many critics suggest, particularly in the so-called stress areas, since the measures that my hon. Friend announced last November. Does he agree, however, that a totally new approach is needed to this matter, so that resources are given where need is greatest and where officials from the regional departments can check the special claims in the areas of need to see that profiteering is not taking place and to put a real spurt behind what is at present an artificial method of assessing housing costs?

Mr. Channon

I have a great deal of sympathy with what my hon. Friend said. As he knows, I did not introduce the yardstick system. It has a number of difficulties, which I am considering.

Mr. Freeson

I certainly agree that over a number of years the housing cost yardstick has introduced financial discipline into this area, where it was previously sorely lacking. Will the Minister support an attempt to seek a totally new approach to this matter by undertaking consultation with the professionals in the field, with local authorities and others, in order to try to work out methods of bringing about efficient common sample testing around the country to ensure that profiteering, inefficiency and financial indiscipline are not occurring?

Mr. Channon

I shall bear in mind the view that my hon. Friend and the hon. Member have put forward in considering this complicated and difficult matter.