HC Deb 12 July 1978 vol 953 cc1484-6
4. Mr. Skinner

asked the Secretary of State for the Environment what are the latest figures for house building in the public and private sectors; and if he will make a statement.

Mr. Shore

The figures for May were published on 6th July. After seasonal adjustment, there were 9,800 public sector starts and 11,300 completions in Great Britain. For the private sector the figures were 12,100 starts and 12,400 completions. While the public sector figures continue to be disappointing, the improvement in the private sector figures this year is being maintained.

Mr. Skinner

But I think my right hon. Friend will agree that overall, over a fairly extensive period, the figures have been extremely disappointing, assisted by such an example as the Broad Meadows bungle at South Normanton in my constituency. Will my right hon. Friend also accept that these policies have been assisted greatly by the inflicted cuts in public expenditure arising out of International Monetary Fund policy?

Will my right hon. Friend take on board the fact that most of us on the Labour Benches recognise that we shall have an uphill battle to get the Tory local authorities to build more, and that he must see to it that the demand is made and that everything is monitored by his Department?

Mr. Shore

I am aware, of course, that there were cuts in the housing programme following the IMF negotiations, but I think that the scale of the cuts ought to be borne in mind. Looking at the English public sector figures, I note that the public sector starts that we achieved in the highest year of our period—1976—amounted to 148,800. What we have budgeted and allowed for in 1977 and again in 1978 are figures which are only a very little short of that—137,000 in both years. The problem which is emerging is that what we have budgeted for is being substantially underspent due to many factors, and not least, in my view, to the fact that most of the district housing authorities are no longer in Labour hands.

Mr. Budgen

Will the Secretary of State confirm that, if the Government were to cut the central Government contribution to indiscriminate subsidies in the public sector, that would allow a cut of about 3p in the standard rate of income tax?

Mr. Shore

I will not verify those figures. We can all, as it were, make our calculations, but the hon. Gentleman should ask himself whether the same people who were paying the increased rents would be gaining from the decreases in taxation.

Mr. Molloy

Will my right hon. Friend consider the legality of the position which now exists in the London borough of Ealing since the Tories have taken over? Housing schemes which had been started, with contracts signed, are now to be stopped and considerable amounts of public money are to be paid in compensation to the private construction company. Will he consider whether that is right and proper and say whether he can do anything about it?

Mr. Shore

I very much deplore arbitrary and abrupt changes in public housing provisions, which inevitably involve heavy costs for local authorities. If my hon. Friend will send me the details, I shall certainly look into the matter.

Mr. Heseltine

When the Secretary of State seeks to put the responsibility for the reduction in public sector housing on Conservative authorities, what excuse has he for the 40 per cent. reduction in the city of Manchester's council house building programme this year as compared with last year, bearing in mind that it is Labour-controlled?

Mr. Shore

I have been referring to the generality of district housing authorities—district councils, of which the great majority are in Conservative hands. There is no doubt that there are circumstances in Manchester which are entirely explicable. The hon. Gentleman will see a very substantial increase this year in Manchester, but we shall not see any substantial increase in London or in a number of other authorities which are controlled by the hon. Gentleman's party.