§ 14. Mr. Gwilym Jonesasked the Secretary of State for Wales what representations he has received regarding the level of service charges which would be due from council tenants of flats, following the purchase of their homes from their local authorities; and if he will make a statement.
§ The Parliamentary Under-Secretary of State for Wales (Mr. Wyn Roberts)My Department has received nine letters, from or on behalf of council tenants, about the level of service charges. There is no evidence to suggest that in general the level of service charges levied by Welsh local authorities is unreasonable.
§ Mr. JonesI thank my hon. Friend for that reply. Does he recognise that service charges are a great disincentive? Is there any evidence that service charges in Cardiff are too high? Will he consider encouraging exchanges in order to achieve greater mobility for council flat tenants? Will he examine the possibility of the cash discount being used to purchase from the local authority or on the open market?
§ Mr. RobertsService charges cover repair and other charges. Provided that they are reasonable—that can be tested in the courts—I do not think that they are a major disincentive. The average level of service charge in Cardiff is £330 per annum. I know of three instances of service charges being as high as £900 per annum. In those cases the charge includes a substantial amount for central heating.
My hon. Friend's suggestion on cash grants would add to public expenditure. It is already possible for council flat tenants to move to council houses.