§ 2.37 p.m.
LORD HAWKEMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they are satisfied that the building industry has at its disposal sufficient skilled men and building materials properly to fulfil the demands being and likely to be made upon it; if not, what steps they propose to take to bring supply and demand into better balance.]
EARL ST. ALDWYNMy Lords, Her Majesty's Government recognise that during 1960 and the early part of 1961 demands on the construction industry were rising more rapidly than the output of the industry, owing to the industry's limited resources, including skilled men. The steps taken by my right honourable friend the Chancellor of the Exchequer in July last year were therefore designed to moderate the rate of increase of demand. The effect of these steps, together with the rising productivity of the industry, has relieved the strain and shortages have become less serious. The demand for some types of craftsmen still exceeds the supply in many areas, and my right honourable friend the Minister of Labour has recently been discussing with representatives of the industry the need for extending and improving the training of apprentices. The supply of building materials has generally been adequate to meet demands over the past few years, although there have been shortages of certain materials at various times. The producers have stated that they expect to be able to meet all foreseeable demands, and shortages of materials should not restrict the output of the construction industry.
LORD HAWKEMy Lords, I thank my noble friend for his most interesting reply. Are Her Majesty's Government aware that, though the position in respect of big contractors may appear to be completely satisfactory, in the case of small contractors who are building single dwellings the building price has risen anything from 15 to 40 per cent. over the last two years, and that the reason for this is believed by many people to be the shortage of skilled labour in the hands of the smaller builders, owing to skilled labour being enticed away by the ever-increasing remuneration offered by big contractors?
EARL ST. ALDWYNMy Lords, I agree that there is a certain amount in what the noble Lord says. Particularly within reasonable range of London, small contractors are finding considerable difficulty in maintaining their staffs of skilled men. I do not think that this is true in other parts of the country, unless there is some big scheme such as a new motorway. It is certainly not true in the North, but I agree that it is the case in the South, particularly around London.
§ LORD MORRISON OF LAMBETHMy Lords, is the noble Earl aware that some years ago the Building Research Station produced a useful Report setting forth plans for great economies, greater efficiency and greater output in the building industry? Could he say how far the industry has adopted those economic and beneficial proposals?
EARL ST. ALDWYNMy Lords, I am not sure to which Report the noble Lord is referring. Perhaps he could give me some guidance?
§ LORD MORRISON OF LAMBETHMy Lords, I admit that the Report was published some time ago, in the later days of the Labour Government. I thought that it was a useful and, on the whole, rational Report.
EARL ST. ALDWYNMy Lords, there has been a considerable number of Reports by the Building Research Station, and, to the best of my knowledge, the industry has taken note of these Reports and adopted a number of the recommendations which have been made.
§ LORD MOLSONMy Lords, my noble friend referred to the periodic shortages of materials and labour in the building industry. Do Her Majesty's Government realise that, on many occasions since the war, the building industry has become very much overburdened and on almost every occasion there has been a balance of payments crisis with the need suddenly to check the amount of work done by the building industry? Will Her Majesty's Government be careful to ensure that there is not an overburden put upon the industry?
EARL ST. ALDWYNMy Lords, as I said in my original reply, my right honourable friend the Chancellor of the Exchequer had this very much in mind last July. It certainly is the intention of the Government to try to prevent any recurrence of this overloading.