Construction (Hansard, 2 July 1975)

§ 13. Mr. Michael Latham
asked the Secretary of State for the Environment whether he will now give a specific persentage figure for the anticipated decline in output on new construction in 1975 compared with 1974.

§ Mr. Freeson
No, Sir; but I expect there to be a decline in new work in 1975 compared with 1974, followed by some recovery in 1976.

§ Mr. Latham
As further catastrophic decline is taking place in construction this year, will the Minister direct his attention to stimulating rehabilitation work, which in particular soaks up unemployment, rather than wasting scarce resources on municipalisation?

§ Mr. Freeson
That question is quite illogical and I shall explain why. The only way to expand rehabilitation work by local authorities—they carry the biggest burden of expenditure in this area—is primarily in relation to the social ownership of the old property concerned. The same is true of work by housing associations. The improvement grant system, which the Labour Party introduced in 1969 for the private sector, is still operating and has been expanded under the 1974 Act.

§ Mr. Frank Allaun
Why did council house starts in the quarter ending in April decline by 15 per cent. compared with the previous quarter? Have not the Government pegged total housing expenditure at its present level for the next four years despite a planned increase in the total gross national product? Will the Minister try to retain at least housing's present share of our total GNP?

§ Mr. Freeson
My hon. Friend should beware of taking one quarter's figures and judging the results for the whole year by them. I have had occasion to say the same thing to Conservative Members. The plain fact is that we are running at a much higher rate of public sector housing starts and, indeed, private sector housing starts than was the case in 1974. I expect this increase in the public sector of about 6 per cent. and overall of about 9 per cent. to be maintained. It is true that we are maintaining expenditure at the massively increased level that we achieved in the last financial year, but, contrary to what has been said in the Press in the past two days, there is no truth in the suggestion that a ceiling has been imposed on new council house building, let alone the suggestion that it will be reduced by 50 per cent. next year, to which my hon. Friends seem to have given credence recently.