HC Deb 10 May 1978 vol 949 cc1179-80
17. Mr. Hal Miller

asked the Secretary of State for the Environment what assistance he is making available to councils to reduce the financial burden of taking over from new town development corporations housing assets built at a high cost and at a time of high interest rates.

Mr. Guy Barnett

Following agreement with the Association of District Councils on the terms of the transitional assistance for the 1978 transfers of new town housing, transfers took place in 10 of the first-generation new towns last month. We hope shortly to put forward proposals for transitional assistance for the transfers in the second-generation new towns which will take fully into account the differences between them and the first-generation towns.

Mr. Miller

Does the Minister accept that the proposal in the case of Redditch involves a burden of £10 million, or £800,000 a year on the rates? Will he accept that there must be a different basis of calculation for the second-generation towns because of the Parker Morris standards of housing and higher interest costs?

Mr. Barnett

I cannot confirm or deny the hon. Gentleman's figures, but I can underline the fact that we shall take into account in our proposals the differences between first- and second-generation new towns. I recognise that in the case of some second-generation new towns questions of higher costs and higher interest rates may be involved in the construction of houses.

Mr. Newens

Does the Minister recognise that houses which were taken over by new town authorities and which were built 20 or 30 years ago in a period when there were low interest rates and when charges were lower in general are now old and require considerable expenditure on their maintenance? Does he also recognise that new town authorities as a whole believe that more assistance should be made available to smooth the path of the transition whereby new town houses previously managed by development corporations and the Commission have been transferred to local authorities? Does he appreciate that this feeling exists strongly in the older new towns as well as in second-generation new towns?

Mr. Barnett

If there are fundamental design faults or other special problems, my hon. Friend will be aware that Section 10 grant is available to meet such circumstances. I cannot comment on that matter at this stage because the claim forms for Section 10 grant in respect of first-generation new towns are expected only at the end of this month. If the houses are old, presumably the outstanding loan debt is a good deal less. Indeed, the Association of District Councils agreed in the transfer arrangements that housing would be accepted, although some of them might be old.

Mr. Rossi

Does the Minister agree that the terrible debts which these local authorities are being asked to shoulder could be considerably reduced by the Minister allowing local authorities to sell off the houses on generous terms to the sitting tenants?

Mr. Barnett

I do not know what on earth the hon. Gentleman was talking about in the first part of his supplementary question, and I think he will recognise if he examines the matter that our policy in respect of the sale of corporation houses is eminently sensible.