HC Deb 04 June 1980 vol 985 cc1401-2
7. Mr. Nicholas Baker

asked the Secretary of State for the Environment how many housing associations are currently being assisted by the Housing Corporation.

Mr. Stanley

Seven hundred and sixty-nine housing associations are currently receiving development finance from the Housing Corporation.

Mr. Baker

I am grateful for that answer. Does my hon. Friend share the impression that I gain from the case of the East Boro Housing Trust and another housing association in my constituency that the standard of services being provided by the Housing Corporation to housing associations is seriously deficient? If so, what action is he prepared to take?

Mr. Stanley

I am not familiar with the instance to which my hon. Friend has referred, but if he will provide me with details I shall be glad to look into it. He may be referring to the general problem of the project control of housing association projects, on which we have been having extensive discussions in a working party with the Housing Corporation and the National Federation of Housing Associations. The issue of project control of housing association projects raises some profound issues of public accountability for substantial sums of taxpayers' money. We are hoping to reach conclusions on that matter as rapidly as we can, but in the meantime, if my hon. Friend will give me details of the scheme that he has in mind, I shall see whether I can help him.

Mr. Alton

How many people from the North-West of England serve on the board of the Housing Corporation? Will the Minister tell us whether the percentage reduction in money made available by the Housing Corporation to housing associations in the North-West was the same as that in the South-East of England?

Mr. Stanley

I cannot answer the hon. Gentleman's statistical question at the moment, but I shall be glad to write to him. I can say that, overall, the cash allocation to the Housing Corporation for the financial year 1980–81 is only about 10 per cent. below our estimated outturn in the previous financial year.

Mr. Budgen

Has my hon. Friend any plans to introduce legislation to make the Housing Corporation either directly accountable to local authorities or more directly accountable to the Department of the Environment and, thus, ultimately to the House?

Mr. Stanley

We have no plans to introduce legislation to make the Housing Corporation more directly accountable to local authorities and I do not think that it would be generally welcomed in the housing association movement for associations to become direct arms of local authority activity. However, we have made provision in the Housing Bill for the administration expenses of the Housing Corporation to be brought more directly under the influence of Ministers in the Department of the Environment through a system of grant-in-aid, which we hope to be able to introduce in the course of the current financial year.

Mr. loan Evans

How many co-operative housing associations are being assisted by the Housing Corporation? Have housing associations been affected by the high minimum lending rate brought about by the Government? When do the Government intend to bring down the high minimum lending rate which is damaging owner-occupiers and dissuading people who might otherwise wish to buy their own house?

Mr. Stanley

As the hon. Gentleman is aware, decisions on MLR are not for me but for my right hon. and learned Friend the Chancellor. I shall have to write to the hon. Gentleman about the number of co-operative association projects currently funded.