HC Deb 05 November 1975 vol 899 cc388-90
13. Mr. Michael Latham

asked the Secretary of State for the Environment what recent discussions he has held with representatives of the construction industry regarding workload, output and employment; and what action he has taken in the light of those discussions.

Mr. Freeson

These topics have been discussed recently in the National Consultative Council for the Building and Civil Engineering Industries and in the Construction Industry Liaison Group. The industry will benefit from the measures recently announced by the Government, in particular the additional expenditure for public sector construction programmes, for factory building and for the encouragement of industrial investment.

Mr. Latham

Is the Minister aware that the NFBTE will report tomorrow that two-thirds of all building firms axe now operating at less than three-quarters capacity and that two-thirds have already substantially shed labour? How much longer will the Government continue to waste on municipalisation and land nationalisation resources that could be put to more constructive use?

Mr. Freeson

I hoped that we should receive a slightly deeper comment from the hon. Gentleman, who should know better about these matters.

I am well aware of the serious situation in the construction industry. Perhaps the hon. Gentleman will explain on another occasion whether he wishes us to embark upon a major expansion in public expenditure in present circumstances, bearing in mind that 50 per cent. of the building industry's workload comes from public sector requirements.

Mr. Ward

Is the Minister aware that in some places where the industry is working and achieving a good rate of progress there are already shortages of key materials such as bricks? Is he investigating this situation?

Mr. Freeson

I am aware of the existence of difficulties about supplies. We are probing the problems put to us about the situation in different parts of the country. If my hon. Friend will give me further information on these matters, about which I know he is concerned, I shall probe it further.

Mr. Tugendhat

Is the Minister aware that in Westminster the building industry could do useful work and ease the housing shortage by converting office accommodation to residential accommodation, as the Westminster City Council wishes? Why does the Minister's Department overrule the Westminster City Council's appeals when that council wishes to convert office accommodation to residential accommodation?

Mr. Freeson

If the hon. Gentleman will write to me about the cases he has in mind, I shall examine them. As a general proposition, I wish to see the clawing back of appropriate office accommodation. I refer to accommodation designed and built originally for housing purposes. However, zoning planning matters are not directly my concern. There are economic issues involved in such clawing back and reconversion. That is a matter in which I am interested. I shall be glad to hear further from the hon. Gentleman.

Mr. Noble

Will my hon. Friend refrain from chastising those Opposition Members who have seen the light with regard to public expenditure? Does not he agree that the main reasons for the increase in the borrowing requirement are the continuing recession, the fall in productive employment and therefore revenue to the Chancellor of the Exchequer and the increase in the unemployment benefit that has to be paid? In the light of that, will my hon. Friend do everything he can to encourage further building, both in the public and private sectors, and so reduce the level of unemployment?

Mr. Freeson

My hon. Friend's supplementary question ranges much further afield than my direct responsibilities. I do not accept as correct the reasons my hon. Friend gives for the increased public sector borrowing requirement. Within the budgetary limits imposed upon me by the present economic situation, I shall seek to get as wide an expansion of housing construction and other construction activities as I possibly can. I think that my hon. Friend will agree that we have achieved a great deal in that direction in very difficult circumstances during the past 18 months.