§ Mr. WatersonTo ask the Secretary of State for the Environment if he will make a statement about the payment of loan charge contributions to local authorities in England and Wales in respect of defective housing expenditure.
§ Mr. BaldrySubject to parliamentary approval of the necessary amending legislation, my right hon. and learned Friend and my right hon. Friend the Secretary of State for Wales propose to contribute to the loan charges payable in 1991–92 by local authorities in England and Wales as a result of the expenditure they incurred before 1 April 1989 in assisting owners of defective housing. The original power in section 569 of the Housing Act 1985 to make contributions in respect of such loan charges was inadvertently repealed in section 157 of the Local Government and Housing Act 1989. Clauses 124 and 125 of the Housing and Urban Development Bill restore it. The purpose is to enable claims from local authorities for sums expected to total £16,777,221 in England and 135W £1,009,731 in Wales to be settled without delay. Parliamentary approval of this new expenditure will be sought in the 1993–94 main estimates for the housing, England vote-class VII, vote 1-and the main estimates for the housing, other environmental services and welfare food, Wales vote-class XV, vote 6. Pending that approval, urgent expenditure estimated at £17,786,952 will be met by repayable advances from the Contingencies Fund.
Contrary to Government accounting conventions, parliamentary approval was sought and given for this expenditure in the 1992–93 housing, England vote-class VIII, vote 1-and the 1992–93 housing, other environmental services and welfare food, Wales vote-class XVI, vote 6-in advance of the necessary amending legislation being put before the House. The provision in England of £18,101,000 for defective housing loan charges subhead L4-and in Wales of £990,000-subhead F4-will not be used for any purpose, apart from settling late claims in respect of loan charges arising before 1 April 1991. Any such claims will continue to be settled through ex gratia payments under the arrangements announced in the answer given by my hon. Friend the Minister for Housing and Planning to a question by my hon. Friend the Member for Norwich, North (Mr. Thompson) on 15 January 1992 Official Report, column 576.