§ 10. Mr. Budgenasked the Secretary of State for the Environment when he expects proceeds from disposals of land to exceed the cost of acquisition and administration under the Community Land Act 1975.
§ Mr. Guy BarnettIt is too soon yet to say.
§ Mr. BudgenWill the Minister confirm that the expected receipts from the sale of land during the period between 1976–77 and 1979–80 will be £300 million less under the Community Land Scheme than the cost of acquisition and management of that land under that scheme? Would not that £300 million be better spent, for instance, on honouring the Labour Party's commitment to a child credit scheme?
§ Mr. BarnettI cannot confirm the hon. Gentleman's figures. I do not know how it is possible to arrive at such figures, as so many variables are involved. I assure the hon. Gentleman that the scheme is bound to be highly profitable. One direct consequence of the scheme and the land tax is that many areas of public expenditure by local authorities, which include the use of land, will be a lot cheaper, because local authorities will be able to get the land.
§ Mr. BlenkinsopDoes my hon. Friend agree that the considerable benefits that will flow from the Community Land Act will come all the quicker with the full co-operation of the local authorities concerned, including those which have recently changed their composition?
§ Mr. BarnettI am glad to be able to tell my hon. Friend that bids are coming into the Department fast, just as much from Conservative as from Labour authorities.
§ Mr. RossiIf the Minister does not know how my hon. Friend arrived at the net figure of £300 million, will he say why the Government put it into the White Paper, and on what calculations they based it?
§ Mr. BarnettI may have misunderstood the supplementary question asked by the hon. Member for Wolverhampton, South-West (Mr. Budgen). I am aware of the estimate that appears in the PESC report. If that is the estimate that the hon. Gentleman gave, I accept it.
I am saying that it is impossible to answer the original Question, because the answer must be based on a great number of variables. We do not know now what will be the cost of land, what individual bids by local authorities will be, which bids will be ultimately approved and what will be the interest rate. There are so many variables that I cannot give the hon. Gentleman an intelligent answer.