§ Mr. Murphyasked the Secretary of State for the Environment if he has received the assessment by National Building Agency Building Performance Services Ltd. of local authorities' claims for grant under section 51 of the New Towns Act 1981; and if he will make a statement.
§ Sir George YoungMy right hon. Friend has received this assessment and I have arranged for copies of the summary report to be placed in the Library. The assessment shows as admissible expenditure against the criteria laid down a total of some £21 million in April 1980 prices out of the £96 million included in authorities' claims—excluding fees and such costs as decanting expenses. We are writing today to the Association of District Councils and the authorities concerned to inform them that we broadly endorse these findings and to invite their comments on them.
We are also informing them that in view of the commitments made over the last three years we are prepared to offer grant at the rate of 40 per cent. on this admissible expenditure. We will be consulting the association shortly about the detailed arrangements for the payment of grant.
Since most of the authorities stand to benefit financially from taking over the housing, it is inappropriate to rely on the specific provisions of section 51. My right hon. Friend will therefore seek to introduce legislation as soon as practicable to cover the grant payments. In the meantime provision and authority for them will be sought initially through the Winter Supplementary Estimates and subsequent Consolidated Fund Bill.