§ 2.52 p.m.
Lord BRUCE of DONINGTONMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper. In asking this Question, it is proper that I should disclose an indirect personal interest in the subject matter of the Question, in that I am an honorary director of a firm called Tribune Publications which has recently suffered a 500 per cent. increase in rent. This fact, however, was not the reason for asking the Question.
§ The Questions was as follows:
§ To ask Her Majesty's Government what steps they propose to take to assist small concerns, including the self-employed who, in numerous instances, may be forced out of business as a result of the decontrol of business rents provided for in the Counter-Inflation (Business Rents) (Decontrol) Order 1975 (S.I. 1975 No. 21).
§ Lord JACQUESMy Lords, this is just as controversial! No special steps are called for to assist small businesses as a result of this measure, but a wide measure of protection is available under the Landlord and Tenant Act 1954. The effects of the decontrol of business rents have been grossly exaggerated.
Lord BRUCE of DONINGTONMy Lords, is the noble Lord aware that as a result of this Statutory Instrument, in effect a further £250 million per annum has been released to the property market? Is he also aware that small firms, just as much as large, can find themselves with liquidity problems? The small firms are just as much entitled to the facilities of the Industry Act 1972 as are the larger industries.
§ Lord JACQUESMy Lords, first of all, the only rents affected are those caught in the 21 years of the freeze. Less than one third of the business rents have been affected. Secondly, there is wide protection under the Landlord and Tenant Act 1954; for example, if the parties cannot agree on a renewal of lease, then the court has the power to fix the rent. Finally, rent is an allowable expense under the Prices Code.
Lord BRUCE of DONINGTONMy Lords, is the noble Lord aware that this Question by no means exaggerates the effect of the rent increase that is now permitted? Is he further aware that it will cost Her Majesty's Government £6 million per annum in respect of their own rented properties?
§ Lord JACQUESMy Lords, the Government, in their wisdom, felt the time had come when there should be greater freedom in the property market, because the freeze was having effects which were not anticipated. In particular, it was having an effect on investments through pension funds and the like.