HC Deb 24 March 1976 vol 908 cc373-5
1. Mr. Gourlay (Kirkcaldy)

asked the Secretary of State for Scotland if he will make a statement on the progress of the home loans scheme for private house purchasers in Scotland.

The Under-Secretary of State for Scotland (Mr. Hugh D. Brown)

The results so far of the special £7 million building societies' scheme for 1975–76 have been disappointing, but the scheme has paved the way for the current discussions between the local authorities and the building societies which I hope will lead to more successful arrangements in future.

Mr. Gourlay

Since the allocation of funds to the local authorities for the next financial year has not yet been made, will my hon. Friend seek to increase that allocation or, alternatively, bring pressure to bear on the building societies to make provision for those persons who require assistance and who are unable to get loans from the local authorities?

Mr. Brown

I hope to announce the allocation to the authorities for 1976–77 within the next week or so. I do not like the use of the word "pressure", but I accept that there is still an area for discussion between the building societies and the local authorities. They are proceeding at the moment to try to give cover by way of loans for property which seems to be attracting loans from neither source at the moment.

Mr. Welsh

Does the Minister accept that the scheme depends on not only the availability of cash but suitably priced housing? What steps is he taking to encourage research into and progress with the starter homes concept in Scotland?

Mr. Brown

That is a much wider question. There is no cash problem in the sense that the money is available from local authorities and building societies at the moment. The trouble arises with property for which, for one reason or another, neither the building societies nor local authorities can provide funds. If any research is needed I am willing to consider how it should be undertaken.

Mr. Canavan

Are the ratepayers not justifiably outraged at having to bear the burden of cheap home loan schemes for officials, some of which now appear to have been illegally introduced without the approval of the Secretary of State? If that is so, would it not be fairer to try to recover money from these overpaid executives, some of whom not only operated the scheme but benefited from it, instead of letting these bandits go scot free with the ratepayers' money?

Mr. Brown

I shall not try to match my hon. Friend's exaggerated and outrageous language. I had enough of that on the Freshwater and Salmon Fisheries (Scotland) Bill. It has to be accepted that perhaps this is just one of the problems to which not enough attention was paid after the reorganisation of local government. We have accepted in the special circumstances that the authorities concerned acted in good faith, but my right hon. Friend will have heard the comments and will no doubt bear them in mind.

Mr. Canavan

This is worse than Clay Cross.

Mr. Teddy Taylor

Many people in Scotland feel that this situation was an abuse and misuse of local government funds. Will the Minister say precisely why it has taken since last August for the Government to act on this matter—action which we fully support?

Mr. Brown

There has been a misunderstanding and we have accepted that, but I would make clear that the authorities acted in good faith. The Conservatives must accept some responsibility for what were freely negotiated arrangements implemented by the local authorities concerned.

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