HC Deb 21 April 1982 vol 22 cc259-60
7. Mr. Hal Miller

asked the Secretary of State for the Environment what is the present position regarding the transfer of housing assets from new town development corporations to local authorities, including the conclusion of agency agreements pending final transfer.

Sir George Young

I am hopeful that further transfers will take place once the financial terms have been settled. Meanwhile, we have been encouraging the making of agency arrangements where this is favoured by the parties concerned, as at Milton Keynes and Redditch.

Mr. Miller

Following the replacement of section 10 of the 1975 Act by section 51 of the current legislation, does my hon. Friend accept that there has been great uncertainty among local authorities about the Government's commitment to the transfer of assets to local authorities? Will he take this opportunity to restate the Government's policy that there should be no burden on the receiving local authority because of the transfer and that housing stock will be brought up to a satisfactory standard before transfer?

Sir George Young

We hope to resolve the problems with the ADC, to which my hon. Friend has referred, when we receive the report towards the end of May. The principle is straightforward. The receiving authority—in his case Redditch district council—would have an entitlement to housing subsidy that would take into account both the extra reckonable expenditure resulting from the transfer and the increased rent resources available. The council has nothing to fear from such a transfer.

Mr. Graham

Is the Minister really satisfied that this additional butchery is necessary and in the best interests of the new towns and the people who live in them? Is it still the intention to favour individuals and speculators, leaving the difficult to manage assets to be taken by the authority, adding to its already difficult task with section 10 or section 51 claims and an unrealistic rate support grant?

Sir George Young

I think that the hon. Gentleman has read out the wrong supplementary question. The question that he asked is about community-related assets. 'The question that my hon. Friend asked is about housing. The principles that govern the two are different.

Mr. Joseph Dean

Is the Minister aware that the transfer of these properties from the new towns to the local authorities may not be a transfer of assets at all, bearing in mind the rapid deterioration now appearing in industrialised and semi-industrialised built houses and flats not only in new towns, but in local authorities? Will the Minister consider what advice he can give to local authorities faced with this problem on an increasing scale? As the local authorities and new towns start to deal with this ever-increasing problem, which is not of their making, will the Government consider giving them some financial assistance?

Sir George Young

That is a slightly broader question than the question facing development corporations. We have stressed to development corporations the need to ensure that their housing stock is in good condition be fore it is handed over to local authorities. We have made resources available to make sure that that happens. 'The hon. Gentleman has raised a slightly broader question about industrialised building, but the Government will certainly look into the matter.