HOUSING FINANCE REVIEW (Hansard, 17 March 1977)

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

§ The PARLIAMENTARY UNDERSECRETARY of STATE, DEPARTMENT of the ENVIRONMENT (Baroness Birk)
My Lords, the Housing Finance Review began early in 1975. The terms of reference were later widened to cover housing policy generally. The bulk of the analytical work has already been completed and the Government are now considering the results of the review. We shall publish proposals just as soon as they are ready, but the issues are both manifold and complex.

§ Baroness FAITHFULL
My Lords, I thank the noble Baroness for her reply. Is it true to say that the review was commissioned in 1974 by the late Anthony Crosland, who asked that the findings should be made public to all, that he was expecting the review to come out in the spring of 1975 and that it is now 1977? Would the noble Baroness let me know, if possible, what is the significance of the change of name? I believe that it is now called not the Housing Finance Review but the Housing Policy Review. Finally, would not the noble Baroness agree that the holding up of this report is detrimental to the pursuit by local government departments of an economic housing policy for this country?

§ Baroness BIRK
My Lords, may I say in answer to the first supplementary Question of the noble Baroness that she 138 is quite correct. The review was announced in another place by my late right honourable friend Tony Crosland on 18th November 1974. Also it is quite true that he said that the results should be made public, and they will be made public; there is no change of policy. The report has been delayed because the original terms of reference were widened to include housing policy generally, which widens it beyond just the financial factors. My right honourable friend the present Secretary of State regrets the delay but the subject is complex and he feels that it should be dealt with thoroughly. As this is a wide look at the long-term policy, I do not think that at the moment the delay is affecting the housing situation; local authorities are still getting their housing allocations. So far as the year ahead is concerned, they know exactly where they are. I can only repeat that the policy review will be published as soon as possible.

§ Lord HARMAR-NICHOLLS
My Lords, may I ask the noble Baroness whether it is true that the review has been drafted more than once because of the opposition of the trade union membership? While everybody would agree that the trade union membership ought to be consulted, it is another matter if they have the final word which causes policies to be altered—as, for example, happened in the last economic review, when £1,000 million was put on the employment tax, which is not in the best interests of the country. As my noble friend has already said regarding this review, certainly it is not in the interests of a good housing policy.

§ Baroness BIRK
My Lords, the noble Lord is getting confused between the Housing Policy Review and the NEDO housing report. The publication of the NEDO housing report is entirely a decision for the Building EDC. Naturally we hope that all the analyses they make will further discussion on housing policy, and their recommendations will be taken into account. However, the noble Lord has mixed up two separate questions.

§ Lord HAILSHAM of SAINT MARYLEBONE
My Lords, while the noble Baroness is meditating on the long-term housing policy, will she reflect upon the fact that ever since I can remember, which is since 1915 in this connection, 139 there has been a continuous housing shortage and that throughout the whole of that period the pillars of national policy have been security of tenure, rent restriction and municipal housing? Will not the noble Baroness reflect that the shortage and the pillars have something to do with one another?

§ Baroness BIRK
No, my Lords, I would not accept that argument. Also I would beg the question of the overall housing shortage. One of the problems which is being considered in the review is the allocation of housing and how it varies from one area to another, so that one finds an acute housing shortage in some places but not in others. I do not think that jettisoning security of tenure and the other tenets which the noble and learned. Lord mentioned will bring along the review any more quickly or any more satisfactorily.

The Earl of SELKIRK
My Lords, is the noble Baroness able to say whether the review will be published under the authority of the Secretary of State or under the authority of the advisory committee which is examining the question?

§ Baroness BIRK
My Lords, it will be published under the authority of the Secretary of State.

§ Lord WYNNE-JONES
My Lords, while my noble friend is meditating upon the dicta of the noble and learned Lord who sits on the Opposition Front Bench, may I ask her to consider why the government of the City of New York has had difficulty with housing: whether they also have had the same pillars to which the noble and learned Lord referred?

§ Baroness BIRK
My Lords, I shall certainly meditate on that point as well.

§ Lord AVEBURY
My Lords, has there not been another pillar of housing policy since 1919; namely, the comparative freedom of local authorities to knock down perfectly good dwellings, as in the case of Southwark and Lambeth recently? While the publication of the Housing Policy Review may not be holding up local authorities in their task of building new houses, would it not be extremely valuable, 140 if this report gives support to the idea, for the Government to give a strong lead against the destruction of good properties and their renovation, as an alternative to building large numbers of new houses which are colossally expensive?

§ Baroness BIRK
My Lords, that is exactly what the Government are currently doing. They are not waiting for the policy review to do that. Local authorities are continually being asked and advised to do the very thing the noble Lord has mentioned.

§ The Lord Bishop of SOUTHWARK
My Lords, as one of the pillars of South-wark that has not been knocked down, may I ask Her Majesty's Government whether the advice is mandatory or not? —because it seems to me that there is taking place in South London a great deal of destruction of buildings which ought to remain.

§ Baroness BIRK
My Lords, the advice is not mandatory because local authorities have freedom to deal with their own allocations. But by means of the allocation of resources encouragement is given to the line of policy which the Government think is better for the community.

Baroness WARD of NORTH TYNESIDE
My Lords, may I ask whether the present committee is the same as that appointed by Mr. Crosland, and, if not, may we have the names of those who have lost their positions or who have been appointed to the new committee?

§ Baroness BIRK
My Lords, the noble Baroness has a very good point there which has caught me out. I can tell her that the committee consists of a number of non-governmental housing experts, but I will write to her about the composition of the committee.

Baroness WARD of NORTH TYNESIDE
My Lords, if the noble Baroness does not mind, I should be very much better pleased if it could be put on the Record so that everybody knows the answer.

§ Baroness BIRK
My Lords, perhaps the noble Baroness will table a Question for Written Answer.

Viscount BARRINGTON
My Lords, can the noble Baroness give a rather clearer answer to the last question asked by the noble and learned Lord, Lord Hailsham of Saint Marylebone, which was not whether she would accept what he said but whether she would reflect upon it? The noble Baroness said that she could not accept it.

§ Baroness BIRK
My Lords, I have not accepted it but I will certainly reflect again.

§ Lord MOWBRAY and STOURTON
My Lords, is not the noble Baroness in agreement that Government policy now should be for less redevelopment and more improvement?

§ Baroness BIRK
My Lords, this is all part of what will come out in the Housing Policy Review. It has for some time now been the Government's policy that concentration should be on improvement.