§ Mr. Terry Davisasked the Secretary of State for the Environment whether he intends to designate Smith houses under clause 1 of the Housing Defects Bill.
§ Mr. GowMy right hon. Friend has considered this most carefully. In addition to studying the Building Research Establishment's report on the structural condition of Smith houses, my officials and I have visited Smith houses in Birmingham. We have also collected such evidence as is available about the condition and value of Smith houses elsewhere.
The BRE report found that foundation movement was occurring in some Smith houses associated with sub-base of colliery shale. It stressed that this is not a defect which is inherent in the system used. Although Smith houses were built in a number of places in the east and west midlands and in south Wales, this defect is only known to be present in some Smith houses in Birmingham.
The BRE also found that most Smith houses exhibit movement cracking between wall units due to cyclic thermal and moisture movements. This fault is likely to have been present for many years; it has not led to any known failure to date and it cannot be considered to have caused the value of Smith houses to be substantially reduced as a result of it having become generally known.
If the defect associated with the use of colliery shale fill were present in the majority of Smith houses nationally and if it were a defect inherent in the system, my right hon. Friend would have no hesitation in deciding to designate Smith houses under clause 1 of the Bill because it is clear that the value of the houses affected by the defect has been substantially reduced as a result of it having become 254W generally known. Since, as far as is known, the defect is present only in one place and is not inherent in the system, my right hon. Friend has concluded, on the evidence available to him, that Smith houses should not be designated under clause 1.
Under clause 10 of the Bill, a local authority is empowered to designate as a class buildings in its area if it considers that they meet requirements parallel to those in clause 1. Where designations are made under clause 10 and a reinstatement grant of 90 per cent. of the eligible expenditure is given to the owner, clause 15 provides for the Exchequer to make a contribution of 90 per cent. towards the local authority's expenditure.
My Department will be writing to the Birmingham city council about a possible designation under clause 10 of the Bill.
I shall keep the hon. Member and other hon. Members who have raised this matter with me informed.