HL Deb 24 July 1962 vol 242 cc936-8

2.43 p.m.

LORD PEDDIE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they intend to restore the facilities under the House Purchase and Housing Act, 1959, whereby Exchequer loans were made available to approved building societies to enable them to lend more freely to purchasers of certain categories of older houses.]

THE MINISTER OF STATE, HOME OFFICE (EARL JELLICOE)

My Lords, the noble Lord will doubtless recall that it was made clear in answer to a Question in another place on June 5 that when the Government's House Purchase Scheme was suspended last year as part of the measures to reduce the burden of public expenditure, some £92 million out of the £100 manner would therefore require fresh legislation.

LORD PEDDIE

My Lords, I thank the noble Earl for his reply, but I can hardly thank ham for the terms of it. I should be glad if the could indicate whether or not he is aware of the fact that loans granted to purchasers of, I think, 86,000 houses constituted a far more economic method of dealing with the housing question than that of direct subsidy. Would the noble Earl agree?

EARL JELLICOE

My Lords, I am of course aware of the advantages which flowed from the Scheme. In fact, it covered not 86,000 houses but, I think, just over 89,000; but that is a point of detail. I would draw the noble Lord's attention to one obvious limitation in schemes of this sort in which funds are made available for the purchase of old houses. The limitation is that this does nothing to increase the total supply of accommodation which is available in this country.

LORD PEDDIE

My Lords, would not the noble Earl agree that, while it does not increase the total supply available, it certainly improves the amenities of those houses that are purchased by these purchasers and which become habitable?

EARL JELLICOE

My Lords, I would certainly agree with that.

LORD PEDDIE

My Lords, if the noble Earl agrees with that, in view of the favourable reply now could he give any indication that the Government intend to restore the facilities under these Exchequer grants?

EARL JELLICOE

My Lords, I am afraid I cannot give the noble Lord the reply which he wants, but I would inform him that the Government are keenly aware of the difficulties confronting house purchasers at the present time, especially younger couples of limited means, and that they are watching this position very closely indeed.

LORD MORRISON OF LAMBETH

My Lords, could the Government do a little less watching and let us have a little more action? Are the Government determined to commit political suicide? Are they not aware that the people who would benefit, not from subsidies (my noble friend is not asking for subsidies) but from Government credit being extended to building societies are largely, though not entirely, the middle-classes—some are working class as well? And why do the Government go out of their way to offend their traditional supporters? They will get more Orpingtons, the way they are going on. It really is idiotic.

EARL JELLICOE

My Lords, I do not think I should follow the noble Lord round those particular electioneering paths.

LORD MORRISON OF LAMBETH

The noble Earl was told to say that by the Leader of the House, I think; I think it was inspired. The Leader of the House would have taken refuge by not saying anything at all. But is it not clear to the noble Earl, that it is desirable that people should be able to purchase their own homes? Is there any crime in people owning their own homes? Would it not be a good thing that Government credit should assist people to be able to borrow on the most advantageous terms? What is the objection to that? It would be only a short Bill.

LORD CONESFORD

My Lords, does my noble friend remember the occasion when the Government, of Which the noble Lord, Lord Morrison of Lambeth, was a distinguished member, withdrew an advertisement of the National Savings organisation that suggested that people might wish to buy their own homes?

LORD MORRISON OF LAMBETH

It is not true. Now the noble Bad follows his noble Leader and does not answer.