HC Deb 23 May 1973 vol 857 cc461-3
23. Mr. Willey

asked the Secretary of State for the Environment why he has refused to allow the public works department of the Sunderland Corporation to build more houses for sale; and, insofar as this may result in an increase in the prices of the new houses, if he will reconsider his decision.

The Under-Secretary of State for the Environment (Mr. Reginald Eyre)

My hon. Friend does not consider building for sale to be an appropriate task for a direct labour organisation whose purpose in the housing field is to assist the local authority where appropriate in the discharge of its basic function of providing, maintaining and improving dwellings to rent.

Mr. Willey

Is the Minister aware that the decision appears particularly stupid to us in Sunderland? The public works department has been building houses very successfully and very cheaply for private sale, and to stop it from doing so will mean delay in the provision of houses because this building work is unattractive to private enterprise. It will mean also that my constituents will have to pay several thousand pounds more for a new house.

Mr. Eyre

As the right hon. Gentleman knows, a scheme at Washington Street, Sunderland, was approved last year. That preceded our decision to encourage local authorities to build for sale in appropriate circumstances. Local authorities have a great deal to do in providing, maintaining and improving dwellings to rent.

Mr. Freeson

Is it not a fact that the Government have been under pressure from the building industry and that is the reason for the instruction which has been issued to local authorities, which will mean that the Government will not allow the local authorities to build for sale with their own direct labour force? Does not this follow strong representations from the private enterprise element in the industry? Are not the Government giving way to narrow ideological pressures?

Mr. Eyre

The Labour Party should remember that it was the previous Labour administration which restricted building for sale by local authorities. By contrast we are actively encouraging local authorities to build for sale to meet local needs for lower-priced housing which are not being met by private developers and to make use of the permitted discounts. The permitted discounts are helpful to low-income purchasers and they represent a reduction in the unrestricted market value.

Mr. Loughlin

Will the Minister accept that the main problem is the provision of houses for people who can afford to buy them at the right price? If the public authorities, through their direct building departments, can produce these houses at prices people can afford, it is intolerable that the Government should refuse them the privilege of doing so.

Mr. Eyre

The direct labour organisations are subject to considerable demands to carry out their basic functions of providing, maintaining and improving dwellings to rent. A considerable proportion of all houses built for sale by local authorities should be built to NHBRC standards, in respect of which private builders are highly experienced.

Mr. Crosland

Surely the Minister agrees that the housing situation, to put it mildly, needs critical study. Does he not welcome any additional possible source of house building facility that is on offer—and this one is on offer in certain parts of the country? In any case, do not the Government believe in any sort of competition?

Mr. Eyre

There can be considerable competition for the contracts for direct sale. I submit that our new policy should be applauded by anyone who has the interests of prospective house purchasers like young married couples and low-income groups at heart.

Mr. Wiley

In view of the unsatisfactory nature of the reply, I give notice that I shall seek to raise this matter as soon as possible on the Adjournment.