HC Deb 05 November 1968 vol 772 cc48-50W
50. Sir J. Eden

asked the Minister of Housing and Local Government why, in view of the need for the Bournemouth Borough Council to encourage house purchases, the quota for advances for the current year has been reduced; and whether he will ensure that the future quota will not be on the level of advances for the current financial year.

Mr. MacColl

The quota has been reduced because of the overriding need to restrain public expenditure and borrowing. The method of calculating allocations for next year will be discussed with the local authority associations.

55. Mr. Harry Howarth

asked the Minister of Housing and Local Government how many local authorities exceeded their revised quota for advances for house purchase before the expiration of the quota period; and how many kept within the quota and yet have been re fused permission to make further advances up to that quota.

Mr. MacColl

According to the returns made as at 30th June, 176 authorities had by that time already committed themselves to a figure in excess of 80 per cent. of their original quota for the full year, but other cases have been and are still being notified; 882 authorities had not so committed themselves, of whom 391 were given nil quotas for the second half-year.

56. Mr. Harry Howarth

asked the Minister of Housing and Local Government if, in view of the fact that the Irthlingborough Urban District Council have kept within the limit in respect of advances for house purchase and that they have approximately £8,000 avail able for this purpose without applying for loan sanction, he will reconsider his decision not to sanction any further advances during the half year ending 31st March, 1969.

Mr. MacColl

No. There is no reserve within the revised overall total available for housing advances from which any such cancelled quota can be reinstated.

Mr. Speed

asked the Minister of Housing and Local Government if he will review his decision to reduce funds available for mortgages for the Atherstone Rural District Council, in view of the representations he has received and the high level of unemployment in the area.

Mr. MacColl

No, I regret that there is no reserve within the overall total available for housing advances from which any such cancelled quotas can be reinstated.

Mr. Harry Howarth

asked the Minister of Housing and Local Government if he will take steps to ensure that local authorities who have kept within their revised quota for advances for house purchase are not at a disadvantage compared with those authorities who exceeded their quota before the expiration of the quota period.

Mr. MacColl

As some authorities entered into firm commitments to borrowers in excess of their quotas, it was necessary to reduce quotas for other areas in order to keep faith with these borrowers. My right hon. Friend regrets this and will be discussing with the local authority associations measures to avoid a recurrence of it.