§ Mr. CarringtonTo ask the Secretary of State for the Environment if he will make a statement on what steps he proposes to take in the light of the proposals by Ealing, Hammersmith and Fulham and Brent councils to use housing investment programme allocations for public housing on a rotation basis to avoid proposed capital controls on council expenditure.
§ Mr. Harry GreenwayTo ask the Secretary of State for the Environment if he will introduce legislation to make illegal arrangements whereby councils rotate public housing built out of housing investment programme allocations on an ownership—leave basis; and if he will make a statement.
§ Mr. TrippierNo proposals for such arrangements have been made to my right hon. Friend, but I understand that they involve the successive short-term leasing of properties for periods of up to three years. The Government propose, subject to the approval of Parliament, to replace the present capital controls with a new system of capital finance which will take effect from 1990–91. We are considering the appropriate treatment for forward commitments entered into by local authorities between the publication of our proposals on 7 July and the commencement of the new system. Authorities entering into forward commitments must of course be satisfied that they have powers and that it is reasonable and justifiable so to do.