HC Deb 03 July 1974 vol 876 cc374-5
Mr. McCrindle

asked the Secretary of State for the Environment what representations he has received from the National Association of Pension Funds on the subject of office rents.

Mr. John Silkin

I saw a deputation from the National Association on 20th June, when it asked for a further statement of the Government's future policy on the control of rents.

Mr. McCrindle

I recognise that the Government have recently indicated some of their intentions for the long term, but will the right hon. Gentleman accept that the pensions of thousands of people and the life policy bonuses of millions of policyholders depend to some extent on the free operation of a commercial property market? Will he indicate his early intention to restore that freedom of operation?

Mr. Silkin

I think that in the statement I made to my hon. Friend the Member for Luton, West (Mr. Sedge-more) on Monday I indicated once again that it was not our purpose to renew the powers to control business rents when they expired in March 1976.

Mr. Horam

Did my right hon. Friend see the recent statement by the chairman of the association, in which he pointed out that the pension funds actually prefer periods of low property values, because they enable them to buy income cheaply? Is he aware that pension funds have less than 10 per cent. of their total investments in land and property?

Mr. Silkin

When one considers the question of business rents, one must consider those rents together. One cannot make differentiations between one group of investors and another.

Mrs. Thatcher

I have read all the right hon. Gentleman's earlier answers, and he has put them all negatively. Is this the right positive form: that, assuming responsibility rests with the right hon. Gentleman after 1976, a free market will be restored in business rents?

Mr. Silkin

I do not think one can prophesy what on earth will happen in March 1976, but our present intention must be good enough. It is that when the powers under the right hon. Lady's Government's Counter-Inflation Act 1973 expire, the present Government will not seek to renew them.

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