§ Mr. Abseasked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he is aware that the proposed rent increase at Cwmbran New Town is the sixth within seven years, and that the failure of the Development Corporation to stabilise rents is due to the high interest rates on its borrowings; and what action he intends taking to ensure that future borrowings of the Corporation may be obtained at lower interest rates.
§ Sir K. JosephI have no reason to think that the rents, after the proposed increase, will be unduly high, bearing in mind the standard of accommodation provided.
It is not proposed to change the arrangements under which the Corporation, like other borrowers, has to pay the market rate of interest.
§ Mr. Abseasked the Minister of Housing and Local Government and Minister for Welsh Affairs what is the average cost of houses now being built to let by the Cwmbran Development Corporation; what will be the total cumulative interest to be paid upon such a house; what rent will be charged upon such a house; and how much of such rent is attributable to interest charges.
§ Sir K. JosephThe average cost, including site works, is £2,967. The 19W total cumulative interest is £7,640, based on a 60-year annuity at the current rate of interest of 5¾ per cent. Thus, the average interest repayment is £127 6s. 8d. The proposed rents are between 48s. 6d. and 57s. 6d. a week. That is not directly determined by interest charges (and is calculated after allowing for subsidy and grant of £40 a house a year).
§ Mr. Abseasked the Minister of Housing and Local Government and Minister for Welsh Affairs what were the total administrative costs of the Cwmbran Development Corporation for the years ended 31st March, 1961, 1962 and 1963, respectively; whether a further increase in administrative costs is anticipated for the year ending 31st March, 1964; how many houses were completed in the years ended 31st March, 1961, 1962, and 1963, respectively; how many are anticipated to be completed by 31st March, 1964; and whether. in view of the rental burden now falling on tenants, he is satisfied that such administrative costs bear a reasonable relationship to the number of houses that have been built.
§ Sir K. JosephTotal administrative costs covering all operations of the Development Corporation were £144,065 in 1960–61, £152,133 in 1961–62, £175,031 in 1962–63, and are expected to be about £254,000 in 1963–64. The number of houses completed during the same period was 403 in 1960–61, 115 in 1961–62 and 287 in 1962–63. For 1963–64 the estimated number is 197 but a further 995 have been placed in contract. The average administrative cost per dwelling has remained virtually unchanged.
§ Mr. Abseasked the Minister of Housing and Local Government and Minister for Welsh Affairs what representations he has received from the shopkeepers of Cwmbran New Town concerning the proposals of the Development Corporation relating to bus routes in the new town; and whether he will review the Corporation's proposals in order to ensure that no hardship falls upon shopkeepers and consumers of the area.
§ Sir K. JosephThe Traders' Association has told me that it objects to the20W proposed one-way traffic system which will affect the use of the bus station. I am looking into the matter.