HC Deb 11 July 1977 vol 935 cc7-8
4. Mr. Wyn Roberts

asked the Secretary of State for Wales what was the extent of underspending on housing in Wales in 1976–77, comparing the actual amount spent with the amount available.

The Under-Secretary of State for Wales (Mr. Alec Jones)

There has been an underspending on housing in Wales in 1976–77 of some £25 million, but accurate figures are not yet available.

Mr. Roberts

I am sure the hon. Gentleman will agree that that is a staggering figure. Is it not about 25 per cent. of the total? Has the Minister's working party, consisting of members of the Council for the Principality and Welsh Office officials, come up with an explanation of the 25 per cent. underspend, which must be regarded as scandalous in view of the housing need in Wales and the high level of unemployment in the construction industry? What steps does it recommend the Minister to take to prevent similar underspend this year?

Mr. Alec Jones

Despite the efforts of my right hon. and learned Friend to secure additional public finance for housing in Wales, he and I were both deeply disturbed when we found that there was some indication that there would be an underspend of the size I have mentioned. For that reason, we thought that, rather than draw somewhat hasty, almost politically motivated, conclusions, we would establish the working party. We are awaiting its report, which we hope to receive very shortly, so that we can devise policies and ensure that this underspend does not occur again. We are all aware of the need for spending on housing in Wales.

Mr. Hooson

Has not the hon. Gentleman come to a tentative conclusion on the reasons for the underspend? If the housing need is what we think it is—and that is what has to be established—why have not the local authorities spent the money? Is it a question of high interest rates, or what?

Mr. Alec Jones

If we knew the reasons, we would not have set up the working party. The reasons put forward by local authorities throughout Wales vary considerably. As I have mentioned in the House before, some authorities suggested that the reason was the heavy rain in October. But, as I said, I thought that the rain fell generously throughout Wales. We are trying to find out whether there are faults in the machinery of monitoring. All the possibilities are being examined to ensure that we find the true reason so that we do not have another underspend.

Mr. Anderson

Will my hon. Friend confirm that some districts in Wales responded with alacrity to the new funds available and spent all their funds, while others manifestly fell far short of that? When the final figures are available, will he show the underspend district by district so that we may see which authorities are the major defaulters?

Mr. Alec Jones

Yes. When the working party has reported, we will publish its report and indicate the areas in which the underspend has occurred.

Mr. D. E. Thomas

When studying the report of the working party, will the hon. Gentleman consider the work of his Housing Division and see in what way its work and particularly the stop-go directives to local authorities on spending on housing have affected the take-up of the allocations?

Mr. Alec Jones

I made it clear to the working party—and this was agreed—that we would not leave anything out from the inquiry. If there are faults in the machinery of the Welsh Office, they will be part of the inquiry. We want the fullest possible inquiry to take place and we shall make its results public.