Community Land Act (Hansard, 4 April 1979)

§ 4. Mr. Budgen
asked the Secretary of State for the Environment if he will make a statement on progress in implementing the Community Land Act.

§ The Minister for Housing and Construction (Mr. Reginald Freeson)
There has been a substantial increase in activity under the community land scheme during the last year—probably double that of 1977–78. The scheme is bringing land forward for housing development and is playing a useful part in our inner city and industrial development programmes.

§ Mr. Budgen
Does the Minister agree that in the first two years of its operation the scheme lost £32 million, that it required 151 Government circulars to administer it and that it disposed of only 180 acres of development land? Does he not conclude that this really must be one of the most obvious failures of the present Administration?

§ Mr. Freeson
I feel weary on behalf of the hon. Gentleman's constituents if that is the sort of stuff that he will be putting out to them. He knows sufficient—at least, he assures the House from time to time that he does—about the proper economic workings of business organisations and trading companies to realise that when looking at the values, disposals and income of a company one does not discount the assets of the company. That applies to the land scheme.
1299 The hon. Gentleman is correct when he says that in the first year or two of the scheme there was a low rate of disposal in relation to the rate of acquisition, which was also below the desired level. He will know, though, that when disposed of—disposal of them has started—those sites will provide profit, as some already are doing for Tory councils as much as for Labour councils, and that will be the future growth of the scheme.

§ Mr. Stan Crowther
Despite the doubling, does my right hon. Friend agree that in its early years the scheme has been a grave disappointment to those who—[Interruption.] Before Opposition Members cheer they should wait to hear the rest of my sentence. Does my right hon. Friend agree that this disappointing performance is due entirely to attempts by Tory councils to sabotage the scheme?

§ Mr. Freeson
There are a number of reasons why, in the first two years of the scheme, the rates of success of acquisition of land and disposal of land for development have been below what was desired. One is that in the early days of the scheme it was inevitable that there would be a low rate of activity. A second reason is that during 1976 there was a genuine cutback of resources, which the Government had, unfortunately, to impose.
Thirdly, although a number of Tory councils—about half of all the authorities that have been participating in the scheme—have benefited, there is evidence that many of them, in certain parts of the country, are acting under guidance from regional offices of the Tory Party. They are refusing to apply the scheme to their advantage. I am aware of one or two areas where even Conservative councils are in rebellion against their Central Office directives.

§ Mr. Rossi
Does the Minister realise that we on the Conservative Benches despair of his salvation, realising that even at this eleventh hour he will not repent and confess that the Community Land Act has been the most ghastly bureaucratic and economic failure that any Government could possibly perpetrate? Will he be honest and admit that it will be with a sense of relief that he will see the abolition of this bureaucratic edifice by the next Administration?

§ Mr. Freeson
The answer is "No". The kind of adjectives—of which we have become weary—that come from the hon. Gentleman are far more ghastly than any opinions that he has about the operation of the scheme.

§ Mr. Skinner
Is the Minister aware that the Conservative-Ratepayers council at Clay Cross is trying to sell off the land and building known as the Clay Cross social centre before 24 May, the date when it will be kicked out? The council is trying to sell it for £50,000, but it will cost £200,000 to replace the building. The Labour councillors' request to know who is putting in the tender has been refused. The council is obviously selling the property to one of its friends. Will the Minister see to it that an investigation takes place before the poll on 24 May?

§ Mr. Freeson
I invite my hon. Friend to let me have more details, and if it is within my power to do so I shall make inquiries. What he has described is not a unique example of the conduct of some Tory councils, guided by the hon. Member for Hornsey (Mr. Rossi). The hon. Gentleman believes that if assets are sold now to make a quick quid to keep the rates down in the current year that creates future benefits for ratepayers. The opposite is true. The so-called party of business men should know better.