§ Mr. Rookerasked the Secretary of State for the Environment if he will outline the procedure by which a local authority is or can be relieved by him of debt charges on housing which is demolished.
§ Mr. John PattenThis procedure applies only to local authorities receiving housing subsidy. If an authority can show, from a full consideration of the alternatives, that demolition is the best course on housing and financial grounds, it can apply to the regional office of my Department for a determination that subsidy should continue to be paid on the outstanding loan debt on the demolished housing and that subsidy should be paid on the costs of demolition. Such an application should normally be made before the decision to demolish is taken. Among the alternatives all local authorities are expected to consider is disposal of the housing or of the cleared site to the private sector. In some cases this will realise enough money to pay off the whole of the loan debt.