§ Mr. Hardyasked the Secretary of State for Northern Ireland whether he will make a statement about the financial position of the Northern Ireland Housing Executive.
§ Mr. Merlyn ReesThe Housing Executive estimates that by the end of the current financial year its cumulative revenue deficit will be over £21 million. This deficit, which includes the deficits inherited from the former housing authorities as well as the deficits incurred by the executive itself since 1972–73, arises from a number of factors: rapid increases in building and maintenance costs and interest rates; a subsidy system which, under existing legislation, has not been able to compensate fully for these increases and rent levels which have not kept pace with inflation.
It is proposed, therefore, to seek parliamentary approval for a payment of £21 million towards the deficits already incurred in the appropriation of the NI Spring Supplementary Estimates 1974–75; and further provision may be needed in the 1975–76 Estimates.
A major examination has already been begun of the financial relationship between the Government and the Housing Executive. This will be effected in close touch with the review of the housing finance which is being carried out in Great Britain. The intention is to place legislation before Parliament in due course.