§ Mr. Gerald BowdenTo ask the Secretary of State for the Environment whether he has any changes to announce to his Department's cash limits for 1989–90.
§ Mr. Chris PattenYes. I propose the following changes subject to parliamentary approval of the necessary Supplementary Estimates.
The non-voted cash limit DOE/HCI (capital expenditure by the Housing Corporation) will be increased by £120,000,000 from £694,250,000 to £814,250,000. The capital resources available to the Housing Corporation in 1990–91 will be reduced correspondingly by £120,000,000 from £1,105,500,000 (as announced in the Autumn Statement) to £985,500,000. This reflects a greater speeding up of housing schemes by housing associations than had previously been forecast. It is not expected to affect the total of resources available and houses provided over the two years taken together. The increase in 1989–90 provision will be charged to the Reserve.
The cash limit for class X, vote 2 (Central Environmental Services, etc) will be increased by £3,813,000 from £312,597,000 to £316,410,000 to cover increased grant in aid of £3,943,000 to the National Rivers Authority to carry out capital works inherited from the former water authorities. This increase will be fully offset by a reduction in the exit external financing limit of the former authorities and minor savings within the vote.
There will be a token Supplementary Estimate for class X, vote 5 (Department of Environment: administration) and the running cost limit for my Department will be increased by £6,580,000 from £162,154,000 to £168,734,000 which reflects increased expenditure on additional staff and consultancy work and the recent transfer of inner cities work from the Cabinet Office and the Department of Trade and Industry to my Department.
There will also be a token Supplementary Estimate for class X, vote 9 (Sale of shares in the water holding companies, etc). There will be a further announcement soon to Parliament giving details of the costs of water privatisation.
The non-voted cash limit DOE/UAI (Urban aid and derelict land) will be reduced by £250,000 from £723,254,000 to £723,004,000 to cover a transfer from my Department to the Department of Transport to meet half 174W the cost of a £500,000 grant to Thames Line plc. A matching increase will be made to the Department of Transport's cash limit for class VIII, vote 2.
The cash limit for class IX, vote 2 (Miscellaneous housing administration and grants) will be reduced by £1,000,000 from £79,417,000 to £78,417,000 reflecting reduced forecast expenditure on housing and construction research.