HC Deb 08 December 1976 vol 922 cc433-4
7. Mr. Hal Miller

asked the Secretary of State for the Environment when he next intends to meet representatives of the House-Builders' Federation.

Mr. Armstrong

Frequent contact is maintained with the House-Builders' Federation. My Department will now meet the HBF regularly in a working group set up last month.

Mr. Miller

What representations has the Minister received from the federation about the effects of Government policy on employment in the construction industry, the price of houses and the rate of house building?

Mr. Armstrong

The representations have been widely publicised. We are concerned about the level of employment and the difficult situation in the construction industry. We have had very profitable discussions with the federation.

Mr. Alan Lee Williams

Will my hon. Friend ask the federation to review its procedure for investigating complaints about the structure of houses? I believe this to be in need of revision. If I send to my hon. Friend particulars of a case, will he look into the matter for me?

Mr. Armstrong

Yes. This is one of the difficulties. If my hon. Friend cares to submit a case, I shall consider it carefully and take it up with him.

Mr. Budgen

Will the hon. Gentleman confirm that house builders expect the number of starts of private houses next year to fall by about 30 per cent.? Is that not an inevitable consequence of the enormous size of the public sector borrowing requirement and the consequent high interest rates?

Mr. Armstrong

The public sector borrowing requirement is obviously one of the causes. That is why the Government are insisting on their economic strategy. The only way to get the construction industry in the situation that we want for it is by getting the economy right.

Mr. Loyden

When my hon. Friend next meets the federation, will he bring to its attention the low quality of building of many council houses and the millions of pounds that local authorities have had to spend on remedial work as a result of the very bad work that has been carried out by private enterprise when building council houses?

Mr. Armstrong

That is an aspect that is giving us great concern. It is one of the matters that we discuss with the builders when we see them.

Mr. Rossi

Will the Minister confirm the forecast of the President of the House-Builders' Federation that housing output in both the private and the public sectors will fall by one-third next year? Has he noted the report today that the Building Societies Association estimates that about £1,500 million less will be available for mortgages next year than this year? Will he consider the effect that that will have on house building and new starts?

Mr. Armstrong

We get numerous forecasts, and I am not going to enter the forecasting game. I remind the House that starts and completions during 1975 were almost 50 per cent. up on 1974. That rate is being maintained this year. As I say, I am not going into forecasts for next year.