House of Commons
Monday, May 6, 1974
The House met at half-past Two o'clock
Prayers
[Mr. SPEAKER in the Chair ]
Oral Answers to Questions
Wales
Departmental Staffing
asked the Secretary of State for Wales whether he is satisfied that his Department is adequately staffed in order to carry out its functions effectively; and if he will make a statement.
Yes. Staffing complements are kept under constant review in the light of the development of the Department's work.
Does the right hon. and learned Gentleman agree that the monitoring of European policy requires that the staffing complement of the European division of the Welsh Office should be substantially expanded?
As I said earlier, I am satisfied that the Department is adequately staffed to meet the proper needs of Wales.
Does the right hon. and learned Gentleman consider that the likelihood of an expansion of the functions of the Welsh Office could be met easily by a modest expansion of its staff, or would it need something pretty big?
Of course, that would depend upon what functions were extended. As the hon. Gentleman knows, in April 1965 the staffing of the Welsh Office was about 380. I think that the last figure was 1,312. Following that, there has been the recent announcement of the elevation of the head of the Welsh Office to the full rank of Permanent Secretary.
Water Rate
asked the Secretary of State for Wales if he will make a statement on the reasons for the increase in the water rate levied by the Wales water authority in the current year.
Charges have increased chiefly as a result of the financial provisions of the 1973 Water Act passed by the previous administration.
Does the hon. Gentleman recognise that he is now in charge and that the Water Act confers on his right hon. and learned Friend, under Section 30(6), the power to give directions to the Welsh Water Authority as to the scale of charges that it may impose? Further, will he give consideration to introducing rebates on water rates, as they are available for other rates?
It ill behoves the hon. Gentleman to talk about increased water charges. He has just found his conscience on this issue, as he voted consistently against any proposals for changes when the Water Bill was going through Parliament. He now asks me about the directions of the Secretary of State. My right hon. and learned Friend has the power to make such directions but they must be given before charges are fixed. The authority fixed its charges for 1974–75 in January of this year, when the hon. Member's party was in power.
Does my hon. Friend accept that it is logical for the charge to be five times as much under the Welsh National Water Development Authority as it is under the Severn-Trent Water Authority? Will he ensure that that situation is reviewed at the earliest opportunity?
Lord Brecon, as Chairman of the Welsh National Water Development Authority, has promised a review of charges during the current year.
Does the Minister accept that the estimates of the Welsh National Water Development Authority for next year involve one element that is open to a considerable amount of questioning, namely, capital works in Pembrokeshire, West Glamorgan and Flintshire? Will he consider that matter and also the possibility of amending the 1973 Act to enable the Welsh National Water Development Authority to levy for water used outside Wales but collected in Wales?
The water authority inherited the estimates of the local authority. Owing to the rushed and rather terrible way in which the Act was introduced, it had no opportunity to survey the requirements and the realism of the capital expenditure programmes. On the second part of the hon. Gentleman's question, the matter is under review, but we have no power ourselves. It is a matter of discussion and agreement between the Welsh National Water Development Authority and others.
Employment
asked the Secretary of State for Wales how many new jobs have been created in the Bangor area in the last five and 10 years, respectively.
The information is not available in the form requested, but jobs provided by manufacturing projects new to the local travel-to-work area are about 240 and 630, respectively.
Is the right hon. and learned Gentleman aware that the figures would have been much better if the county authority had made more land available for the development of small native service industries? Will he urge the new authorities to make more land available, especially in view of the shocking increase of one-third in the unemployment figure for the Bangor area between March and April of this year?
This is a matter primarily for the local authority concerned, whether it be the previous or the present authority. Naturally, I am concerned about unemployment generally. Thankfully, the figure for the whole of the area is about the same as it was this time last year. However, it is still much too high. In all my endeavours for the whole of North Wales I shall do as much as I can to reduce unemployment to a level much more acceptable than it is now.
Is my right hon. and learned Friend aware that within five miles of Bangor, in Gaerwen in Anglesey, we have ample land set aside for precisely the purpose which the hon. Gentleman mentioned. If my right hon. and learned Friend can find industries there, it will help Bangor very much.
asked the Secretary of State for Wales if he will arrange for a survey of the Welsh economy to be undertaken to establish the number of jobs which need to be created over the next five years in order to meet the Government's economic growth target for Wales.
The employment needs of Wales are already the subject of continuing review.
Is not the right hon. and learned Gentleman aware that in Research Paper No. 8 of the Kilbrandon Report it was estimated that there was a need for 216,000 new jobs in Wales by 1976 to meet reasonable economic targets? In the absence of any specific figures, does he accept this as a target to work towards?
There have been figures from time to time regarding the need for new jobs in Wales. This is not the only matter requiring action, but I shall continue to do my utmost. I regard the provision of new jobs and adequate homes in Wales as the No. 1 priority of my colleagues and myself.
In the process of assessing job needs in Wales what attention is now paid to recruitment to the coal mining industry in Wales? Is the process of recruitment helped or hindered by the announcement of the closure of Ogilvie Colliery?
The closure of Ogilvie Colliery was a matter for the National Coal Board, and such examinations and decisions will take place in the ordinary course of events in this extractive industry.
The Government have commenced, with the National Coal Board, a review of the whole of our energy requirements and I wish to nail here and now the allegations and suggestions made about a fortnight ago that there is to be a massive run-down in the South Wales coalfield. Recent decisions taken regarding investment in South Wales should put an end to that allegation.
Will the Secretary of State give an estimate of the number of jobs in Wales which would be lost if Britain pulled out of the Common Market?
I had not previously realised that the hon. Gentleman was an advocate of that cause, but if he is I am sure he would like to put down a Question. I shall do my best to assist with an answer.
I thank my right hon. and learned Friend for giving priority to jobs in Wales. Will he consider attracting new public industry to Wales to provide these jobs, and also consider bringing Celtic Sea oil under public ownership?
My hon. Friend knows what our intentions are—they were spelled out in our manifesto. Regarding the future of oil, it is as yet early in the day to anticipate what is likely to be found in the Celtic Sea, but I hope very much that we shall use all our endeavours to ensure the maximum provision of new employment in Wales.
Roads (Welsh Council's Report)
asked the Secretary of State for Wales whether he intends to accept the recommendations of the Welsh Council contained in its report, "Roads in Wales".
My right hon. and learned Friend will bear in mind the views of the council when formulating future road policies.
I welcome the fact that road expenditure in Wales has increased at about twice the rate of that in England over the last five years. The Under-Secretary will be aware that the Welsh Council's report recommended that early steps should be taken to consider prospective needs that might arise if oil were found in the Celtic Sea, to avoid later hold-ups. In the light of that recommendation, what action has the hon. Gentleman taken, is he taking, or does he propose to take?
The Welsh Council recommended that
"Early steps should be taken to consider the prospective needs that might arise should oil become available on a commercial basis in the Celtic Sea."
This is now being done, and the public expenditure implication of whatever needs to be done on roads and other services will be considered, along with the needs of other parts of Wales. The hon. Gentleman may also like to know that my right hon. and learned Friend will be making a statement on these lines in the future.
Will the hon. Gentleman use his good offices and get together with the county road authorities to see whether a better system of priorities can be devised? The overwhelming impression is that far too much money and effort are going into minor works, and that there is not enough concentration on major, trunk roads.
The priorities of the Welsh Office Roads Division at this time are the extension of the M4 in the south and the considerable improvement of the A55 in the north.
Does the hon. Gentleman give the same priority as the report does to the development of the A55? Will he give an assurance that before the Secretary of State takes a final decision on the A55 the so-called inland route will be given every consideration?
The Welsh Office is very sensitive to the views of the people of North Wales and will take no decisions without fully consulting the whole of the population in the best manner possible.
Bridgend General Hospital
asked the Secretary of State for Wales whether the purchase of the land for the new Bridgend General Hospital has now been finalised; and whether he will confirm that construction will commence in 1977.
Not yet, but this should not delay the starting date. Health building programmes from 1975–76 onwards are currently under review with the new area health authorities.
I thank my hon. Friend for that reply. Will he and my right hon. and learned Friend bear in mind that I was given undertakings six months ago by their predecessors at the Welsh Office that the purchase of the land was in train and that the commencement date would be not later than 1977? I hope that that can be confirmed here and now.
As I said earlier, the date of commencement is a matter for discussion with the new area health authority. Land is purchased when it is required and will be purchased when necessary.
Is my hon. Friend the Under-Secretary aware that my hon. Friend the Member for Ogmore (Mr. Padley) should not be too distressed by this delay, because as long ago as 1962, and again in 1966, we were promised a hospital in west Monmouthshire, but not even the land, nor ultimate planning permission, has yet materialised?
That is a rather different question.
Agriculture Industry
asked the Secretary of State for Wales what discussions he has had with the Farmers' Union of Wales about the future of the agriculture industry in Wales; and if he will make a statement.
I have had full and frank discussions with representatives of both agricultural unions in Wales about the state of the industry.
Now that he has had discussions with a representative of the National Farmers' Union of Wales and other agricultural organisations in Wales, is the Minister aware that the majority of farmers in the Principality are opposed to the Intervention Board and the system of intervention adopted by it? If this is so, will the right hon. and learned Gentleman bring pressure to bear on the Minister of Agriculture, Fisheries and Food to reintroduce the guaranteed payment for beef produced in this country, so that it will bring stability back to the producers and beef at a reasonable price to the housewife?
I am aware, as I am sure the hon. Gentleman will confirm, of the feelings in the industry. Unlike the Liberal Party, I have never been a supporter of the common agricultural policy. The industry should not talk itself into a crisis.
In view of the current problems of agriculture in Wales, particularly of hill farmers, will my right hon. and learned Friend now make representations to the Prime Minister that somebody with specialist responsibility for agriculture in Wales be attached to the Welsh Office.
As I am sure my hon. Friend is aware, I have joint responsibility for agriculture in Wales with my right hon. Friend the Minister for Agriculture, Fisheries and Food, and I am advised by the Welsh Secretary for Agriculture in Aberystwyth. During the past few weeks I had discussions with some representatives of the agriculture industry in Wales.
Is the right hon. and learned Gentleman suggesting by his previous answer that the farmers have talked themselves into the present crisis? Does he therefore draw the conclusion that no action at all is required by the Government?
The hon. Gentleman knows exactly what has happened. Following the last round of Brussels talks, my right hon. Friend the Minister of Agriculture, Fisheries and Food was able to inject a certain amount of help into the industry by way of a calf subsidy and an increased subsidy to producers. There have been mounting costs for the industry for a long time. A great deal of the anxiety which is now being expressed arises because of matters of which the hon. Gentleman and his hon. Friends should be well aware, because they existed long before this Government came into office.
Will the Secretary of State confirm that what his right hon. Friend did also as a result of his visit to Brussels was to abandon intervention buying, with the result that there is no bottom to the livestock market? This is what is concerning our farmers in Wales.
I do not think that the hon. Gentleman understands how the mechanism works. It is important to see this in its proper perspective. Protection against unduly low-priced imports is given by the EEC system of duties and levies. The hon. Gentleman should not overlook the direct subsidies and help which my right hon. Friend was able to give to the industry following the Brussels talks.
Heart Operations
asked the Secretary of State for Wales what is the waiting period for heart operations at the University Hospital, The Heath, Cardiff.
Waiting times depend on the relative urgency of each case. At present, 191 patients await the more major open heart surgery and 32 await closed heart surgery. Admissions to both types of surgery are being increased.
May I thank the Under-Secretary's colleague for the helpful letter I received this morning? Does my hon. Friend agree that the public are entitled to a better service than they have received hitherto, bearing in mind the millions of pounds which have been spent on this prestige project to the detriment of established hospitals in Wales? Will my hon. Friend bear in mind that there was a fatality involving a Newport woman in this department at the hospital a few months ago?
My hon. Friend has been concerned about this matter, I know. He will like to know of the measures to speed matters up. Open heart surgery operations have recently been increased to six a week and should shortly increase to eight when an additional theatre comes into use. The present weekly rate of four closed heart operations will, I hope, also be increased.
Is it not some-what sad that the waiting list should exist, particularly as there were magnificent facilities available at the Sully Hospital which were abandoned on the very ill-advised counsel of the Welsh Hospital Board? Should not this be looked at again?
On matters of this sort we are always very sensitive to the views of the people of South Wales. New open heart cases have been averaging about five a week. Given the hoped-for increase in the rate of operations, the waiting list should reduce progressively.
Derelict Land
asked the Secretary of State for Wales how many schemes for clearing derelict land in Wales are now under consideration by his Department; and what is their estimated cost.
The number of schemes in the proposed five-year programmes recently submitted by Welsh local authorities totalled 479, at an estimated cost of about £50 million. These proposals are being urgently considered by the Welsh Office.
Does my hon. Friend not agree that these schemes are absolutely vital for the future prosperity of industrial South Wales and that there is urgent need for land to be cleared for housing, industry and other vital services? Will he indicate the amount of money likely to be spent during each of the next four or five years.
My right hon. and learned Friend the Secretary of State hopes to announce soon the programme for the next two or three years. These are important matters, as my right hon. Friend and myself know only too well from what we are told in our constituencies. The criteria will be, first, safety and, secondly, industrial and housing land.
Is the Under-Secretary aware that it is not only in industrial South Wales that there are serious problems, and that, whereas many fine schemes have been pursued in South Wales, there is a great need in many areas of Gwent to solve the problem of slate waste from a previous industrial age? It is a great eyesore, particularly in tourist areas.
My right hon. and learned Friend the Secretary of State and I have seen only too recently the slate waste at Blaenau Ffestiniog and elsewhere and we are more than conscious of it. However, we have seen also successful schemes of clearance of slate waste in North Wales.
Sewerage Rates
asked the Secretary of State for Wales if he will take steps to ensure that sewerage rates attract rate rebates; and if he will make a statement.
The purpose of the rate rebate scheme is to afford relief to ratepayers in respect of general rates. Under the Water Act 1973 sewerage charges are no longer a part of the general rate. Substantial assistance has already been given to domestic ratepayers through the domestic element of the rate support grant to help meet increased charges for water and sewerage services.
I appreciate that this matter needs much consideration, but will the hon. Gentleman and his right hon. Friend take account of the fact that the result of excluding sewerage from the rebate scheme must, in the long term, lead to a devaluation of the rebate system?
As the hon. Gentleman will know, when the Water Act was going through Parliament many of us made urgent representations on this specific point, but the Act excludes sewerage from rate support. We have taken account of the hon. Member's constituency concern. Barry received an increase in the domestic element of the rate support grant, which is now 33·5p in the pound.
Does not my hon. Friend accept that rate rebate ought to cover the water charge, which is dependent on the rateable value of the property, in the same way as are rates? Surely it should qualify for rate rebate?
This is not allowable under the Water Act 1973 as it stands at present.
Does not my hon. Friend agree that the Water Act 1973 is a positive millstone round our necks?
Yes, Sir, very much so.
A5
asked the Secretary of State for Wales what plans he has for the improvement of the A5 trunk road in North Wales.
My right hon. and learned Friend aims to secure a progressive improvement of the A5 to meet modern traffic requirements. Two schemes, costing over £100,000, are under construction, five are in the firm programme and four more schemes are being investigated.
I am grateful to my hon. Friend for that information, but is he aware that improvement of the A5 trunk road in North Wales is more important for the prosperity of North Wales than any other single road in the area, including the A55? Will he take this into account in the future allocation of resources? If we are to have new jobs in the area there must be much better communications.
My right hon. Friend is correct when he says that the A5 is important for the economy of North and North West Wales; that is why I am glad to say that there has been good progress on the work at the Britannia Bridge. Subject to the satisfactory completion of statutory procedures, the main work on the road deck and approach roads should start before the end of next year.
In taking steps to improve the A5, will the Secretary of State ensure that links to the A5 from Blaenau Ffestiniog are improved, in view of the feasibility study in the area?
The Government intend to do everything possible in the area which the hon. Gentleman has mentioned and in neighbouring areas.
Brecon (Expansion)
asked the Secretary of State for Wales if he has yet studied the publication sent to him by the borough of Brecknock council outlining proposals for the expansion of Brecon and if he will make a statement.
This report is an interesting contribution to planning in Powys. It is for the local planning authorities to consider what action should be taken on it in the first instance.
My right hon. and learned Friend will be aware that Brecon is one of the designated growth towns of Mid-Wales and that any studies or plans for Brecon will be of little use without a bypass for the town. Will he therefore speed up progress on the bypass, which has been hanging fire for many months?
I know, and the whole House knows, the way in which my hon. Friend has campaigned unceasingly for a Brecon bypass. He beseiged my predecessors with question after question and is at my door week in and week out. I expect to be in a position to make an announcement soon.
Hospital Travelling Costs
asked the Secretary of State for Wales if he will make a statement about his policy with regard to the cost of travelling to hospital in Wales.
Travelling expenses for patients and visitors to hospitals are refunded to those who satisfy the usual criteria of need.
I thank my hon. Friend for that reply, but is he aware that it imposes an unfair test of the means of many people who should not have to be subjected to that system? Does he realise that in many parts of Wales the cost of travelling to and from hospital, for patient and visitors, is prohibitively expensive in terms of both time and money? What improvements are in prospect for the ambulance service in rural and urban areas? Does my hon. Friend acknowledge that while transport improvements might meet the problem in certain rural areas, in urban areas it will be met only by cutting the distance which people have to travel by building new hospitals, as in west Monmouthshire?
My hon. Friend is an old campaigner on this matter and he speaks much good sense. I am aware of the travelling difficulties of patients in some parts of West Gwent, but it is for the new area health authority to take this matter into account, along with other competing matters in the area.
What does the hon. Gentleman propose to do about the recommendation that Wales should follow the example set in the Islands and Highlands of Scotland and the Scilly Isles?
I have studied those examples, but we estimate that it would cost a great deal to implement those arrangements in Wales, and at this time of public expenditure cuts we can do nothing—for the moment.
Are any studies being made of the impact on the morale of patients of the incidence of visiting by families of small means who are unable to visit frequently because of the time and expense involved?
No. 14. Mr. Ioan Evans.
Answer.
If the Minister does not choose to answer a supplementary question, we must get on to the next Question.
Improvement Grants
asked the Secretary of State for Wales if he will make a statement on the home improvement grants and on future policy regarding home improvement discretionary grant.
As I announced last Tuesday, the Government propose to introduce legislation to extend the qualifying period for the 75 per cent. rate of improvement grant in Wales. The Government's policy on the future of improvement grants is set out in the Housing Bill.
I thank my right hon. and learned Friend for his earlier statement, which has been well received by those who have already applied. What action does he intend to take to call on local authorities to prepare to implement the proposals in the new Housing Bill when it becomes law?
As my hon. Friend is aware, the new Housing Bill will first have to have the approval of the House, and I hope that it will get that approval speedily. As for the much-needed housing drive in Wales, and getting improvements under way, the Under-Secretary, my hon. Friend the Member for Merthyr Tydfil (Mr. Rowlands), has visited a number of new housing authorities in Wales to give them help and enouragement and to assure them that we are available for that purpose, and I very much hope that arrangement continues.
Is it not clear that there will be a period after 23rd June this year and after the passing of the Housing Bill, before the new housing action areas are decided, and that therefore there will be a period when only a 50 per cent., as opposed to the 75 per cent. grant, will be available in Wales? Is not this rather surprising, in view of the pressure put on the previous Government for an extension of the period of the 75 per cent. grant?
First, I hoped that as an act of charity the hon. Gentleman would say that he welcomed the extension, for which many of us campaigned in the last Parliament, when the Government that he supported refused point-blank to extend the period. Indeed, in a circular of 14th September they told local authorities that there was no question of the provisions being extended.
Secondly, I very much hope that we can count on the hon. Gentleman's support so that we may get the Housing Bill into law as quickly as possible. Thirdly, I hope that in the meantime, in anticipation of the Bill's coming into force, local authorities will consider their position, so that the moment the Bill comes into effect they will be able to plan accordingly. We shall certainly give them every encouragement to do so.
Severn-Trent Water Authority
asked the Secretary of State for Wales if he will define the precise relationship between his Department and the Severn-Trent Water Authority with regard to the responsibilities of that body in relation to water and sewerage in the Mid-Wales area; and whether he is satisfied with such arrangements.
There is no direct relationship, but the Water Act 1973 requires close liaison between the Severn-Trent Water Authority and the Welsh National Water Development Authority. A joint committee has been established for this purpose. The Welsh authority is required to keep my right hon. and learned Friend fully informed about matters of joint interest to the two authorities.
Is the Under-Secretary satisfied with this liaison? As he is well aware, in rural areas certain sewerage schemes are being undertaken for the first time, loan sanction for them having been vetoed by the previous Government. Those authorities are anxious to proceed. Is he satisfied that his Department has any influence with the Severn-Trent Water Authority?
We have not had time to find out whether the arrangements are satisfactory, for the scheme has been in operation for only a matter of months. Individual sewerage schemes are matters for individual authorities, but I have no reason to believe that the Severn-Trent Water Authority will discriminate against Montgomeryshire.
Industry
Concorde
asked the Secretary of State for Industry if he will make a statement on the future of the Concorde project.
asked the Secretary of State for Industry what recent discussions he has had with the French on the future of Concorde.
The Government are pressing ahead with their review of all aspects of the future of Concorde, in the light of the many views put to us. Consultations with our French partners have continued during their election period.
Does not the Secretary of State agree that the improved pay load and performance figures of Concorde announced by BAC on 23rd April must seriously call into question some of the figures given to the House by the Secretary of State on 18th March? Will he also comment on the allegation in the Sunday Express of yesterday that he is not receiving from his civil servants a full flow of facts about Concorde?
There is no truth in the allegation that information submitted to me by the firm is not getting through to me—I have had a letter from the firm this morning which it has given me permission to mention and which indicates that that is the case—indeed, quite the reverse, for there has never been so much information as is now made available to Ministers as a result of publishing the figures.
One secondary effect of publishing the figures is that, in the light of representations about the development of Concorde since, we have been able to make alterations in the figures that were published to the House. That process is what the review is all about and in due course I shall be in a position to report to the House.
The House will welcome the fact that some review is taking place. However, I draw my right hon. Friend's attention to Early Day Motion No. 59, which calls upon the Government to consider setting up a Select Committee, or a senior ministerial committee, on this matter. Will my right hon. Friend prevail upon the Minister of State to spend less time reminding other Ministers of commitments and policies that we supported in opposition and urge him to consider policies to which his Department is committed, namely, to setting up a Select Committee—a matter on which we divided the House on the Second Reading of the Concorde Bill and on further stages? Will he also press upon his colleagues not only the need for a Select Committee, but the need for a debate and the issue of a White Paper before any decision is taken about the future of Concorde?
I shall certainly take account of what my hon. Friend says. He will recall that in 1972 I moved for a Select Committee before the Concorde Bill was approved by the House. As my hon. Friend knows, this is not a matter for me, but I am sure that what he has said about a Select Committee will be drawn to the attention of my right hon. Friend the Lord President of the Council.
Will the right hon. Gentleman give the House the latest break-even load factor reached by British Airways on the North Atlantic, or any other routes, and give the calculations on which that is based? Is not the figure highly encouraging?
The hon. Gentleman knows that I am not the sponsoring Minister for British Airways. This is a matter for my right hon. Friend the Secretary of State for Trade. However, the figures that British Airways have produced depend upon the anticipated load factor and upon the fare structure, and in due course I hope that I shall be able to say something about that. Clearly, these assumptions have considerable relevance to the likely effects of Concorde operations on British Airways.
Motor Industry
asked the Secretary of State for Industry what is his policy towards the public ownership of selected companies in the motor industry.
I have at present nothing to add to what I said in the debate on the Address about my intention to implement the policy laid down in the Labour manifesto.
Leaving aside his own predilections for nationalisation, will the right hon. Gentleman assure the House that, certainly for the lifetime of this Parliament, it will not be Government policy to bring into either complete or partial public ownership the assets of British Leyland?
I thought that the hon. Gentleman might mention that in his supplementary question. It gives me an opportunity to say that the Press reports about the relationship between British Leyland and myself during the past two weeks are inaccurate. There is normal contact with the major firms in this country at official level, but no request has been made, and the matter does not arise. I note what the hon. Gentleman says, and I recall that he was on the Government benches when the Conservatives brought Rolls-Royce into public ownership.
Will the Secretary of State give the assurance for which my hon. Friend asks? It is important in terms of future investment in the British motor industry that there shall be no attempt to nationalise the industry during the lifetime of this Parliament.
The right hon. Gentleman had better note what I said in my answer—that I have nothing to add to what I said in the debate on the Address about the implementation of our programme as stated in the Labour Party's manifesto. I congratulate the right hon. Gentleman on the active work which he has done in bringing to the attention of the public the meaning of the Labour manifesto, in which he has occupied himself, quite unsuccessfully, but it throws some doubt on his surprise when he discovered that this Government, unlike his own, intended to implement their programme.
Civil Service
Scientists (Pay)
asked the Minister for the Civil Service if he will make a statement on his policy towards the Pay Board's method and criteria for determining Government scientists' pay.
asked the Minister for the Civil Service what consideration has been given to the outstanding interim pay claim made by the Institution of Professional Civil Servants.
asked the Minister for the Civil Service if he is aware of the dissatisfaction expressed by Government scientists employed at Winfrith in Dorset in the matter of the Pay Board's report on criteria in determining scientists' pay; what representations he has received from them; and if he will make a statement.
I am well aware of the concern felt by scientists in Government establishments. I hope, however, that the urgent discussions we are having with the IPCS in the light of the board's recommendations will result in a satisfactory basis for resolving the immediate pay issue. Should this imply pay adjustments beyond those at present permissible within existing pay procedures, I can now assure the House that, on the basis of a statement to be made later today by my hon. Friend the Secretary of State for Employment, the Government will be prepared to take the necessary steps, in consultation with the Pay Board, to enable them to be brought into effect.
The hon. Gentleman's last announcement will be welcomed by those many hon. Members who recognise that the Civil Service scientists have a substantial claim, in view of the gap which has opened between their remuneration and that of the administrative, professional and technical groups.
As the hon. Gentleman suggests, this is, in effect, evidence that the log jam has now a good chance of breaking up. The discussions which are to take place should produce the final evidence of this.
Will the hon. Gentleman take it that my constituents at the Explosives Research and Development Establishment are themselves becoming very explosive and will greet the statement which he has just made with some relief? We are obliged to him.
I thank the hon. Gentleman.
I think that I am grateful to the hon. Gentleman for his statement—it did not tell us a great deal, and it is hard to say—and I hope that my constituents also are grateful; but did the hon. Gentleman note the reasonable request of the Institution of Professional Civil Servants that a decision be reached, or at least that negotiations be well advanced, by the end of this month? Will he confirm that that is likely to be so?
I cannot give any indication of date, but the hon. Gentleman is right to imply that this was a jam in the method of deducing pay settlements and that the matter will now be finalised as a result of the Government's action, the detail of which will be announced later this afternoon.
The progress thus far will be greatly welcomed, but will the longterm outcome be a unified grading for scientists in the Civil Service and implementation of the Fulton recommendations?
I understand the important point which the hon. Gentleman makes. We shall be looking into this matter with great interest.
Civil Servants (Rôle)
asked the Minister for the Civil Service what is his policy with regard to giving political tasks to civil servants.
The rôle of civil servants remains the same as in the past. They are expected to serve Ministers to the best of their ability while maintaining political neutrality. They are not given tasks of a party-political nature.
Does my hon. Friend agree that the use of the head of the home Civil Service as deputy Prime Minister in talks with the TUC constitutes a serious constitutional impropriety, and is conduct which might threaten the integrity and impartiality of the Civil Service? May we have an assurance that this Government will not misuse civil servants and abuse the constitution in the fashion of the previous Government?
My hon. Friend is right to draw attention to the need to preserve the distinction between civil servants and politicians. I am sure that this has been noted in all quarters. I have no further comment on the specific reference which my hon. Friend made.
Political Advisers (Security Vetting)
asked the Minister for the Civil Service in which Departments political advisers appointed since 1st March 1974 have so far completed the security vetting procedures appropriate to their functions.
This is a matter for the Minister in charge of the Departments concerned, but I can assure the hon. Member that the appropriate procedures are being followed in each case.
The hon. Gentleman will know that this Question was transferred to him by the Prime Minister. May we have an assurance covering No. 10 Downing Street. the Foreign Office and the home Civil Service that in no case do political advisers have access to highly classified papers or highly classified information until the appropriate procedures are satisfactorily completed?
It is the long-standing practice not to comment on the application of security procedures in these cases, but I assure the hon. Gentleman that the procedure which has prevailed in the past is being carried out now.
Sir William Armstrong (Estacode Rules)
asked the Minister for the Civil Service whether he will make a statement concerning the application of the Estacode rules to Sir William Armstrong.
All civil servants are bound by the Estacode rules. These require senior officials to obtain the consent of the Government before accepting within two years of retirement offers of employment with bodies which have financial or contractual relations with the Government. Sir William Armstrong accordingly sought, and received, permission from the present Leader of the Opposition when he was Prime Minister to accept an appointment with the Midland Bank after his retirement from the public service. My right hon. Friend the Prime Minister endorsed this decision.
Noting that the permission was sought and given, will the Minister, when saying his farewells to Sir William, remind him how repugnant many of us found the profits of the Midland Bank last year? Will he remind Sir William also that we should like to see something done in that direction, since it serves as a reminder that, while a large number of us are suffering the effects of high interest rates, other people are managing to do rather well out of the same situation?
I am sure that my hon. Friend will realise that the position of a former senior civil servant in the Midland Bank will make that kind of communication between the Government and the bank easier to maintain.
Government Departments (Dispersal)
asked the Minister for the Civil Service if he is yet in a position to say what further steps he is taking to decentralise Government Departments.
asked the Minister for the Civil Service if he will make a further statement on the discussions relating to the proposals in the Hardman Report.
We are considering the Hardman recommendations in the light of our employment policies and of the points made by local authorities and the staff side. I regard this as most important and look forward to announcing decisions as soon as possible.
My hon. Friend will know that there was voluminous criticism in Scotland about the Hardman recommendations. Will he give an assurance that this Government will be more ambitious in decentralising Departments to Scotland than Hardman suggested?
I understand the strong case which my hon. Friend makes for Scotland. The whole Government accept the need for large blocks of work to go to Scotland, and the Hardman recommendations, together with all the considerations involved, are being reviewed in precisely that light. We hope to come forward with something which will be favourable to Scotland.
Is the hon. Gentleman aware that the period of greatest relative prosperity in Scotland's history was when there was no civil servant in Scotland save the secretary to the Lord Advocate? Does he realise that the best which could be done for the Scottish economy would be to send elsewhere no blocks of Government Departments from Whitehall but to diminish the scope of government overall?
I understand what the hon. Gentleman says, but it is at some variance with the views of many hon. Members from Scotland who have been writing to me and contacting me regularly in order to seek this valuable work, which will provide greater employment in Scotland. This is what I am trying to do.
Is my hon. Friend aware that, apart from Scotland, there is serious dissatisfaction with the report in Yorkshire? Will he consider carefully the dispersal of Civil Service Departments to areas which need not only industrial development but administrative centres?
The Government attach high priority to growth in the regions, and to the whole of the Hardman Report being examined in the light of our extreme concern about the way in which we can provide much-needed jobs in the regions.
House of Commons
Voting (Indisposed Members)
asked the Lord President of the Council if he will initiate discussions with a view to allowing sick Members of Parliament to vote by proxy.
While this is essentially a matter for my right hon. Friend the Patronage Secretary, I know that there will be widespread sympathy for the purpose which prompts the hon. Lady's Question.
May we have more than sympathy? May we have a definite course of action? What would be the position if, as the result of a sick Member coming here to vote, he or she died? Do we have to wait for that to happen before we do something?
My right hon. Friend the Patronage Secretary will read the Question and answer, and no doubt he will have talks through the usual channels.
Does my right hon. Friend agree, on the basis of the operation by the joint Opposition during the course of this Parliament, that we should worry not so much about sick Members but about virile so-called Members of the Opposition seemingly not wanting to vote?
Government Assurances
asked the Lord President of the Council whether he will consider moving to set up a Select Committee on Government Assurances on the lines of that instituted by the Lower House of the Parliament of India.
The authorities of the House have kindly brought to my attention an article in "The Parliamentarian" of April 1974, which discusses the functions of the committee of the Indian Parliament to which the hon. Gentleman refers. I have read the article with considerable interest, but I believe he will find that this Government will carry out their assurances without the need for a Select Committee to be set up to remind us of them.
Is the right hon. Gentleman aware that we are often fobbed off with glib assurances from Ministers of the Crown, of whatever party? Why does he think that the position in India is so different? Will he think again about this?
If the hon. Gentleman has a specific case in which he feels that an assurance given by a Minister has not been kept, I shall be happy to look at it.
Members' Business Interests (Register)
asked the Lord President of the Council if he is now in a position to announce his policy on a compulsory register of business interests for all Members.
I would refer my hon. Friend to what I said in the House on this matter on 2nd May following my Business statement.—[Vol. 872, c. 1333.]
Does the Minister agree that the sooner a compulsory register of Members' business interests is set up the better for the reputation of the House? Is he aware that the vast majority of Government supporters are in favour of compulsory registration and that even some Conservatives now favour the idea?
I have undertaken to write this week to each of the parties about this, and to put down a resolution on behalf of the Government, which I hope we shall debate before the recess.
Does the right hon. Gentleman intend that any such declaration of Members' interests should in any sense be retrospective?
The hon. Gentleman must await the Government's decision on this and its appearance on the Order Paper, when he can make up his mind about it.
Is my right hon. Friend willing to accept the decision of the Labour Party, and if it votes in its private meeting for a Three-line Whip will a Three-line Whip be put on?
This again is a question for my right hon. Friend the Patronage Secretary. What happens in party meetings is a domestic matter for the party.
Does not my right hon. Friend agree that this is party policy, and that he was elected upon the declaration that if the Labour Party formed a Government it would institute a compulsory register of Members' interests?
In answering questions it is not my job to say what is or is not the policy of my party. My hon. Friend and I can talk about that privately.
Does my right hon. Friend agree that a vote on a compulsory register upon party lines would provide Parliament with an opportunity for the Opposition to vote in this Parliament? We should then either succeed or be defeated and, if defeated, we should go to the country on the matter and get a fresh mandate.
That is a very interesting thought.
Privilege (Member's Complaint)
asked the Lord President of the Council whether he will move to refer to the Committee of Privileges the matter of the complaint made in the last Session of Parliament by the right hon. Member for Bristol, South-East (Mr. Benn)
This would be a matter for my right hon. Friend, who is now considering the position in the light of a further letter he has received from the solicitors representing Aims of Industry, to whom he will be replying in the near future.
I fully understand the right hon. Gentleman's own problems about the Committee of Privileges, but he gave an undertaking on Thursday to my hon. Friend the Member for Peterborough (Sir H. Nicholls) that he accepted that this matter required resolution. This is an urgent matter, which requires early resolution. Will the right hon. Gentleman say, whether or not he intends to take the chair at any meeting of the Committee of Privileges, whether and when this matter will be referred to the Committee of Privileges?
First, I have no problems about the Committee of Privileges—none whatever. Secondly, the procedure is for my right hon. Friend to move that the matter be referred to the Committee of Privileges. I have looked into the matter, as I said I would in reply to the hon. Member for Peterborough (Sir H. Nicholls), and I cannot now refer it myself to the Committee of Privileges. It must be done, once more, by my right hon. Friend, if at all.
Does my right hon. Friend agree that it is time hon. Members stopped putting down Questions which enable them to make snide personal references to hon. Members on the Government benches? Is it not fair to say that if this practice persists some of us will make exposés of hon. Gentlemen on the Opposition benches?
Some day one or two Opposition Members—not more—will learn that there are no votes and no credit in dirt.
Accommodation
asked the Chairman of the Select Committee on House of Commons (Services) how many backbench Members of the House (1) are provided with the use of a room within the Palace of Westminster, (2) are provided with the use of a room outside the Palace of Westminster, (3) are not provided with the use of a room, and, within the first two categories, how many Members have the sole use of a room; and what is the maximum number of Members allocated to any one room.
Within the precincts, 70 back benchers have been allocated single rooms and 280 allocated other rooms. The maximum number of Members in any one room is 14, in the Large Desk Room of Westminster Hall Annexe.
Outside the precincts, 33 back benchers have been allocated single rooms and 102 allocated other rooms. The maximum number of Members in any one room is 11, in Room No. 3 of Old Palace Yard.
In addition to these writing places there are 110 writing places within the precincts allocated to Ministers, Whips, Mr. Speaker, Deputy Speakers and party leaders. This leaves a theoretical balance of 40 Members without allocated writing places. Of these Members, approximately 10 use the writing tables in the writing rooms off the Members' Side Galleries; and some 10 lady Members are using the writing places in the lady Members' Rooms. There are 23 writing places which have not yet been allocated.
Does the right hon. Gentleman agree that on those figures accommodation for back benchers is totally inadequate, and that for the proper performance of his or her duty every back bencher should be provided with the sole use of a room? As a temporary measure, will the right hon. Gentleman consider the possibility of the valuable but empty accommodation at No. 10 Downing Street being made available for back benchers?
As the backbencher chairman of the Committee, I have much sympathy with what the hon. Gentleman says.
Will the right hon. Gentleman consider making available suitable accommodation for the group of Members who form the Parliamentary Party of the Scottish National Party? We are in the difficult position of having no Leader's room—[ Interruption. ] If discontented hon. Members will subside for a moment, I may be able to get through my question. When will accommodation be provided for facilitating the business of the Party Whip, and when will the Scottish National Parliamentary Party receive the same recognition as the Liberal Parliamentary Party?
That matter no doubt will be considered by the Services Committee.
How many rooms were allocated to back-bench Members and to parties before the present Services Committee was set up?
I am afraid that I cannot answer that question without notice.
Counter-Inflation Act (Consent Powers)
I will with permission, Mr. Speaker, make a statement about the use of my consent powers over pay.
We want to see a smooth transition from statutory controls to voluntary methods, using the limited powers of consent available under existing legislation to ease the most exceptional difficulties. An essential part of that transition is that those who have made settlements on the basis of the present arrangements should stick to them and others who have yet to settle in this pay round should do so at much the same level as those who have. In this we have received the full co-operation of the TUC which has honoured its pledge not to press any special case beyond the miners and which has issued guidance to member unions which is fully in accord with the Government's approach. And this approach, I must emphasise, covers the vast majority of people affected.
However, it is borne in on me daily how many difficulties are created by the present controls, and I have make clear that I have no power to issue a consent except where the circumstances are truly exceptional. Nevertheless, I am anxious to do my utmost to relieve grievances and inefficiencies wherever this can be justified in accordance with the legislation; so I have considered carefully the many representations made to my Department.
Most cases inevitably have to be rejected, but I have, after due consultation with the Pay Board, intervened in the case of Glasgow firemen and Hull freezer trawlers where the conditions created were exceptional. I have one or two other cases of this particular nature also under consideration and, as my right hon. Friend has indicated in reply to Questions today, I would be prepared to intervene as necessary in the case of the Government scientists in the light of the recent Pay Board report on the determination of their pay.
As my right hon. Friends the Secretaries of State for Scotland, Social Services and Education are announcing today, the Government wish to advance their social policy in two areas—education and training for nurses and improved staffing for schools in stress. In order to carry through the new pattern of education and training for nurses in line with the Briggs Report, we have decided to implement immediately certain preparatory measures which have pay implications; and the Government also propose that the present arrangements for additional pay for teachers in schools in areas of social deprivation should be extended.
In addition, I have been convinced that there are some minor aspects of Post Office operations with pay implications which have a strong case for consideration for exceptional treatment, and I am in consultation with the Post Office management and unions, although I must stress at once that this is not a proposal for meeting the main claim of postal workers for a special review. In all these cases I believe that the circumstances are of an exceptional character and, if the outcome of the negotiations related to the implementation of these policies leads to improvements in pay and conditions out of line with the current controls, I shall be prepared to take the necessary steps, after consultation with the Pay Board, to enable them to be brought into effect.
I am still considering the extremely strong case put to me last week by London Transport and the various unions involved. This raises urgent questions in the light of the necessity to sustain the public transport system in the capital city. I am also conscious of the more general problem of the London situation and that many unions are anxious to open negotiations on this question. On this I can assure the House that the Pay Board is fully aware of the urgency which attaches to its awaited report on London weighting.
Many other cases have been brought to my attention, and those who have presented them naturally feel that they, too, have good grounds for special treatment. But I have had to say "No" to a number of representations from those who have asked for a full-scale review—and this includes the teachers and the postmen—because I have not been able to say that these are truly exceptional circumstances, and general reviews in these cases would run the risk of reopening the whole pay round. Meantime, I have tried to exercise the extremely limited power as fairly as I can.
Will the Secretary of State confirm that his statement underlines his intention to continue the use of the counter-inflation legislation and of the Pay Board? If so, that is welcome—but, if it is so, then it means that his statement is very thin. Is he aware that we shall wish to see what he decides in the other cases he mentioned, but is it not important when coming to a decision to consider the position of various groups relative to other people? Does this not underline the importance of some relativities mechanism and the need to use the relativities procedure?
Thirdly, is he aware that we realise the immense complications of London weighting and the Minister's difficulties in regard to the Pay Board and its report? At the same time does he realise how important it is that this report should be produced at the earliest possible moment?
If I may take the right hon. Gentleman's supplementary questions in the reverse order, I am fully aware of the importance of the report on London weighting. We have done everything in our power to impress on the Pay Board the urgency of obtaining that report, and the Pay Board is fully aware of this fact.
As regards the second question about relativities, the Conservative Government did not guarantee in any sense that if a matter was referred to the relativities procedure it would necessarily mean that a settlement would be reached. It is, of course, right that account must be taken of changes in relativities, but it is also necessary for other factors to be taken into account since they may have as much significance as have relativities.
As for the remark by the right hon. Gentleman that the statement was very thin, I think it can be said that it is a good deal fatter than any statement made by the Conservative Government on this subject.
Is my right hon. Friend aware that most Labour Members are grateful for his statement? Is he also aware that there are difficulties not only concerning the relativities between different industries but in terms of anomalies created by differentials within the same industry, and often inside the same factory? Will he give the House some guidance on his policy in dealing with those difficulties?
I assure my hon. Friend that there are a host of difficulties on this subject which have been brought to my Department's attention by private industry and also by the public sector. It is extremely difficult to deal with them. It is certainly impossible to deal with them under the consent procedure in the present legislation. We want to achieve a system in which these matters can be dealt with by the proper arrangements of negotiation. Incidentally, all these proposals have been referred for negotiation to the parties concerned. We want to reach a voluntary system in which free negotiation can operate over an ever-growing area. That is the best solution to the problem. But we must make the change-over in a way which does not injure the policy that comes afterwards.
Will the Secretary of State say how many workers are now working under arrangements made under the present legislation and how many more will be bound by that legislation if the advice that he is proposing to offer is accepted? Will he bear in mind that he will have the full support of most Conservative Members if he finds it necessary to prolong the present legislation, or something like it, for some time?
My aim is not to prolong the present legislation but to get rid of it. I want the House to be under no misunderstanding about that situation. We want to arrive at a situation in which free negotiation will be substituted for the present statutory system. There is no doubt about that whatsoever. As for the number who have settled under phase 3 and the number who still have to settle, I do not know the exact figures but I shall be happy to find out and to give them to the right hon. and learned Gentleman. I do not think that those figures have the significance which they were given by the Conservative Government, because it must be remembered that few people who signed under phase 3 did so voluntarily. They did not like it. That factor must also be taken into account.
Has the right hon. Gentleman considered the difficulties that this is causing in development areas where new firms can move in and are able to pay what they like and where old firms, and even those who moved in a year ago, cannot compete with them? Is he aware that free competition would allow wages to be raised in these areas? Will he use his consent powers, and does he consider such anomalies in development areas to be "exceptional circumstances"?
I doubt whether the regional implications could be accepted as grounds for exercising the consent powers, which are to be applied only in exceptional circumstances. That would be much too general an application of the doctrine. But I am very glad to see that the hon. Gentleman is now beginning to recognise the difficulties of statutory controls. I welcome his assistance in that respect.
Is my right hon. Friend aware that this decision will be received with bitter disappointment by Post Office workers and that the proposals offer no solution to the serious staffing problems caused by the abysmally low pay of Post Office operational grades? Can he say whether there is any possibility of the use of the consent powers being reconsidered in regard to Post Office staff?
I fully understand that my statement will be disappointing to postmen and Post Office workers generally, because the very strong case that they have put to me has been for a special survey covering the whole of their system of payments. What I have proposed in this statement is only a very minor approach. It is not intended as an approach to deal with the whole of that question, and it does not purport to do so. I am sure that my hon. Friend is expressing the disappointment that many postmen will feel about the statement. I am afraid that I cannot hold out any hope to my hon. Friend that we shall use the consent powers to deal with the postmen's situation. Despite that, I hope that the proposals which we have made—proposals upon which the postal workers will be able to negotiate with the Post Office—will be acceptable even if they do not go anything like as far as the postmen wish.
Do the right hon. Gentleman's replies mean that he is continuing the counter-inflation policy and the Pay Board in broadly the same way as the previous administration? Will the effect be that agreements now entered into will be fixed at those levels for the next 12 months? Although that is to be welcomed, is it not in direct contradiction to all that the right hon. Gentleman has said previously?
The hon. Gentleman has not followed the matter exactly. It is not the same policy as that which was pursued on these matters by the previous administration. The previous administration did not use their consent powers in any single case. That is part of the reason why we had a miners' strike and a three-day week. The hon. Gentleman should know that probably as well as anyone else in the House. He was one of the architects of the three-day week and the miners' strike. He must not assume that we are applying the same policy. We are using the consent powers under the legislation in the way that I have described in order to ease awkward situations, and our goal in the matter is quite different from that of the previous administration. Our aim is to make as smooth as possible a transference to voluntary methods. Their aim apparently was to keep the compulsory controls, whatever disasters might be involved.
Is my right hon. Friend aware that most of his hon. Friends recognise the very considerable problems involved in passing from the absurdities and anomalies of a statutory policy to a voluntary one but that, despite that, we are unhappy about the degree of resentment arising among certain groups of workers over the anomalies which continue? In view of that, can my right hon. Friend give any indication when some of these anomalies will be sorted out? We have some indication in the case of the teachers and the London allowance, but it is some of the other anomalies which will make the development of a voluntary policy later all that more difficult.
If my hon. Friend or any other hon. Member sends me details of any specific cases, I will look at them, as I have looked at these cases. During the past few months, I have looked at numerous cases brought to my attention by hon. Members on both sides of the House. In some, we have been able to suggest ways by which the matter might be put afresh to the Pay Board, and some difficulties have been overcome by that method. We have sought to overcome other difficulties by the consent procedure. In some of the others, we have had to say that we could not see any way round at all. Therefore, the only hope of getting round them eventually will be when the compulsory powers are abandoned. But I hope that my hon. Friend will send me details of any application, and we shall look at that in the same way that we have looked at these.
The right hon. Gentleman said that new settlements should be broadly in line with settlements under phase 3 and that unions were not pushing claims which were excessive in terms of the social compact. In those circumstances, why has the right hon. Gentleman found so many claims being pushed which he has not felt to be sufficiently exceptional to use his consent powers?
If all exceptions could be granted they would not be exceptional— even under the language of the previous legislation. That is the way in which we have had to deal with it. We have asked, and the TUC has asked, as part of our method of trying to change from one system to another, that those who have already made agreements should stick to them and that many of the future agreements which are still to be settled under this pay round should come in roughly the same range. There are still quite a number of settlements to be made on that basis. The engineers' settlement comes within that framework, and it is one of the reasons why it was quite a considerable advance that we secured a settlement on that basis. That is the way that we are proceeding, and I think that most people will see that we are applying common sense to the problems.
Will my right hon. Friend confirm that the consent powers will enable him to endorse the back-dating of exceptions to which he agrees? May we be assured that they can be taken back to the beginning of phase 3? Will my right hon. Friend also confirm that this could include any agreement affecting the London weighting?
May I say to my hon. Friend that he should take it this way—and it is one way of stating the case, though it may not be an exact reply to the way in which he put his question. I hope that at least it is a clarification of the matter. I fully understand the feelings of my hon. Friend and those of many other hon. Members in all parts of the House on the subject of the London weighting. When the London weighting report is published, all the parties to it—the unions and the employers—will be free to negotiate on the matter. Certainly the Government will not put up any obstacles in the way of that negotiation taking place as speedily as possible. We shall try to discover methods by which we can assist in a settlement being reached very speedily. The question whether that settlement involves any retrospective aspects will also be part of the negotiation. It can be brought into negotiation at that time.
Does the right hon. Gentleman accept that particular problems arise in areas affected by oil discoveries and oil-related industries? Is he aware, for example, that in the North-East of Scotland we have vigorous—some might say rapacious—competition for labour between existing industries and new people who are coming in to take advantage of these discoveries? Many men in my constituency are paid less than £24 a week and cannot get an increase because of the operation of the pay code. Is not the code poisoning industrial relations in these areas because of the way in which it is applied?
The details of that case have not been brought to my attention. If the hon. Gentleman, the employers or the unions concerned wish to bring the matter to my attention, I will examine it in the same way as that in which I have examined others. It would be wrong for me to give a judgment about such a case without looking into it and seeing how it compares with other cases.
Does my right hon. Friend accept that the whole House and probably the country would unanimously agree that an exceptional case that could be dealt with by the consent procedure is the nurses' claim? Will he assure the House that the Whitley machinery will be put into operation again quickly to give the nurses an instant taneous increase, because throughout the country their standard of living is falling?
I am sure that the whole House will agree with my hon. Friend that the nurses have a strong claim. Nobody disputes that at all. What I have stated is not that we shall be able to give consent for a special survey of nurses' pay but that we have made proposals for nurses designed to secure improvements for career nurses which affect about at third of the total number. The details will be announced by my right hon. Friend the Secretary of State for Social Services. She will deal with the detailed matters. I realise that this does not go anything like as far as the nurses or the House would like, but it makes progress in that direction. I think that what we have suggested will be welcomed generally.
Is the right hon. Gentleman aware that the Opposition think that he is right to adhere in large part to the policy that was carried through by the previous administration? On the other hand, if, as he says, it is being carried through under duress by so many millions of workers, we are puzzled why he has not carried out his election pledge and done what he shouted so often from these benches that he would do, namely, to abandon the policy entirely. If he had wished, he could have introduced a Bill to repeal the whole of the counter-inflation legislation, the Pay Board, and stage 3 directly the Labour Government took office.
The right hon. Gentleman apologised for the fact that he cannot do much about the postmen, the nurses, and so on. Is he aware that if he carried out the policy of using the relativities procedure under the Pay Board the postmen could have a complete review, as could the nurses and other groups who gave evidence to the Pay Board and said that they wished to be considered in that way? It would be much fairer to allow all groups of workers to go to the Pay Board under the relativities procedure than to have some arbitrary decision by the Secretary of State—because that is what his announcement today amounts to. The right hon. Gentleman said that he will allow free negotiation. What instructions will he give to the Government who are so largely involved in many of the negotiations that he has announced? May we have a little less humbug from the right hon. Gentleman? Will he state now that he has overthrown what he said from these benches and the basis on which he fought the election?
We certainly have not had much shouting from the Opposition recently. However, we are glad that the right hon. Gentleman has recovered his voice on these topics.
The right hon. Gentleman suggested that we could deal with all these matters by the relativities procedure. He ought to know, having tried to run a statutory incomes policy as long as he did in defiance of his election pledges, that it is impossible to deal with many of these matters purely on the basis of relativities. Relativities may take account only of certain circumstances, such as what was earned by people at an earlier period. The relativities procedure does not necessarily take account of a whole series of other factors, such as whether a service is breaking down or not getting its manpower. Therefore, we say that a procedure that is designed to deal solely with relativities does not deal with all these problems.
Moreover, the right hon. Gentleman has now suggested that he proposed a procedure whereby relativities would deal with all these matters and that they would not be subject to arbitrary decision by the Government. I am using the powers under his legislation. The consent power has, in the end, to be exercised arbitrarily in the sense that the Secretary of State for Employment has to make up his mind under the Act whether to give a consent. On that basis I am not acting any more arbitrarily than the right hon. Gentleman suggested he might have to act. The difference is that I have exercised the powers, whereas he did not. Indeed, he plunged the country into the worst industrial smash up since the 1920s because he would not exercise the consent powers under his legislation.
The right hon. Gentleman asked why we do not abolish all these powers under the legislation. [An HON. MEMBER: "The Labour Party said that it would."] We did indeed, and we will carry out that promise. I hope that we shall have the full support of right hon. and hon. Gentlemen opposite when we do. Everyone who has discussed these matters with any attempt to apply reason to them agrees that one of the gravest deficiencies of a statutory incomes policy is that it piles up a huge danger of explosion when we try to remove it. Therefore, the process of removing it is difficult. We are seeking to do that. Anyone who has ever studied a statutory incomes policy knows that what I am saying is true. We are carrying out this policy, and I hope that we shall have the enthusiastic, support of right hon. and hon. Gentlemen opposite when we finally carry out the pledge that we have given on this matter as we have carried out our pledges on so many others.
Does my right hon. Friend agree, in considering the use of consent powers, that there is an impression abroad that the main criterion is the number of people involved? Previous questions have brought the attention of the House to the fact that many people in companies and in factories face situa- tions where differentials exist because agreements have been negotiated but cannot be completed because of the Pay Board. This is creating a great deal of discord in certain industries. Will my right hon. Friend examine this matter and endeavour to free claims where settlements have been reached by trade unions and employers?
Whether large or small numbers are involved, these are cases in which employers and workers have reached agreement. Such cases are not exceptional on that ground alone. We are seeking to overcome these difficulties not only in cases in which large numbers of people are concerned—some of the cases to which I have referred involve small numbers—but in cases of individual firms which we have considered. I repeat, if my hon. Friend and others will send me details of cases we will examine them as fairly as we have sought to examine others.
Will the right hon. Gentleman explain what is truly exceptional about the 20 per cent.-plus pay rise for the Glasgow firemen apart from the fact that the Pay Board clearly could not get the money back? Since he attaches such importance to parliamentary sovereignty, may I ask what opportunity he will give the House to debate the manner in which he has exercised his discretionary powers?
Regarding the Glasgow firemen, in whom the hon. Gentleman has shown such persistent interest, as has his hon. Friend the Member for Glasgow, Cathcart (Mr. Taylor)—I am sorry that he is not here to join in the discussion today—the national agreement contains provisions for the payment of travelling expenses for fire brigades where there is severe undermanning. Other fire brigades, where the percentage of under-manning was smaller than in Glasgow, were already benefiting from the provisions. The Pay Board's ruling could have jeopardised the maintenance of safe manning levels in Glasgow, so we took a wise decision there. I hope that we shall continue to have the hon. Gentleman's support on this matter. Indeed, that is the only thing that makes me wonder whether what we have done is wrong.
Will my right hon. Friend reconsider the point that he made about the withdrawal period after a statutory incomes policy and his reference to the fact that it is terribly difficult to come out of one? If that is the case, and bearing in mind all the previous incomes policies, would it not be better to get rid of it "at a stroke"? As the right hon. Gentleman the Leader of the Opposition has now thrown down the gauntlet, may I ask my right hon. Friend why he does not pick it up?
There are several gauntlets lying around. We want to pick up the nearest handful. I am grateful to my hon. Friend for his suggestion on that account.
I think everyone understands the serious aspect of the matter, which is that if a change is being made from one system to another one tries to do it in a way that does not cause a great upset, particularly when other pledges have been made and one wants to carry them out in the process. I have in mind pledges to old-age pensioners, pledges about rents and pledges about Budget policy. All those pledges are to be carried through, and we are working the matter out in the way which most people think is the most sensible way of going about it.
In the carefully worded preamble to his statement the right hon. Gentleman referred to present pay demands. When does he expect the next pay round, and of what dimensions does he expect it to be?
I do not think that one can fix dates like that for a pay round. Some of them will run out in the autumn, while some will go on for much longer. It is not helpful, or even accurate, to try to fix the dates which govern that. The dates are much more overlapping and extensive than that.
Housing Bill
Order for Second Reading read.
4.2 p.m.
I beg to move, That the Bill be now read a Second time.
Perhaps I may start by apologising to the House for the absence of my hon. Friend the Minister for Housing and Construction. He is ill in bed. Although he is not seriously ill he has an extremely high temperature and has rightly been forbidden by his doctor to attend the House today. That being so my hon. Friend the Under-Secretary of State will wind up the debate.
On the 5th February 1974—how far back in the dark ages that seems now…—we debated the Housing and Planning Bill which had been introduced by the previous administration. I felt then, as I said at the time—and so did many of my hon. Friends—
I strongly believe that politicians should relate their deeds in government to their words in opposition, and I was delighted to see that the right hon. Lady the Member for Finchley (Mrs. Thatcher) eloquently endorsed that belief in her speech last Monday, although it has not noticeably been done by the U-turn Government of which the right hon. Lady was for so long a member. I begin by drawing attention to what my Labour colleagues and I said in February, and I hope to show that the Bill before the House has been markedly strengthened and improved in an effort to meet the criticisms that we made when in opposition.
Equally important, I want to underline the crucial reforms of wider housing policy that have been made or set in train in the short time that we have been in office, for these reforms will change for the better the whole context in which the Bill will operate.
Our basic objections from the then Opposition benches to the previous Bill were as follows: first, that wholly inadequate resources were available under the previous Government's public expenditure proposals to make a significant impact on the deplorable living conditions which far too many of our people still have to endure. Secondly, we felt that nothing was done to provide
I should like now briefly to describe the steps which the Government have taken, or propose to take, to deal with these weaknesses in the previous approaches.
First, we have made a start upon increasing the financial resources devoted to the housing programmes contained within the Bill, or which will buttress its provisions. The Explanatory and Financial Memorandum to the Bill states that public expenditure will be increased by about £102 million per year, at 1973 survey prices, once the impact of the Bill has been fully experienced, say by the financial year 1977–78. In other words, the total annual cost of housing programmes relevant to the Bill as they were set out in Cmnd. 5519 will rise by 1977–78 from about £400 million to about £500 million. At 1974 survey prices that figure will come to about £600 million.
As the House knows, since the Bill was published the Government have announced that in 1974–75 an extra £350 million is to be made available for housing purposes in England and Wales. Some part of this extra sum—for example, £50 million on municipalisation —is also relevant to the objectives of the Bill, and any continuation of this provision—that is, the £350 million—in later years will still further increase the forecast expenditure of £600 million in 1977–78 to which I have referred.
We are trying to meet the point that I made in the House on 5th February, that the redistribution in favour of the areas of greatest need intended by the Bill must take place
Secondly, there is the question of the supply of council housing. The Government have taken decisive action to boost the supply of local authority houses. Circular 70/74, issued on 19th April, has given local authorities the green light to make an early increase in their building programmes, to purchase new but unsold houses built originally for owner-occupation, and to make a start on acquiring rented dwellings in the areas of housing stress. I hope that as a result we shall see a gradual increase in council accommodation, especially in the major conurbations, because only if we do so will local authorities be able to embark upon the declaration of housing action areas, confident that they can cope with the rehousing of tenants resulting from the rehabilitation of old and often overcrowded houses. And of course we have, in addition, taken action to avert the threat of higher mortgage rates for home owners, and to enable the building societies to increase the flow of mortgage lending for new home buyers.
Our third criticism of the earlier Bill was that it failed to alleviate the hardship and the insecurity involved in the decline of the private rented sector, and again we have acted. Almost our first act on taking office was the freezing of residential rents. Even more important, as soon as the necessary drafting has been done—and work is proceeding as fast as possible—we shall introduce the promised Bill to give security of tenure to furnished tenants, and hence protection against the arbitrary loss of their homes.
The extension of security for furnished tenants is a long-overdue measure of social reform which the late Dick Crossman, whom we all deeply mourn, bitterly regretted not having insisted on when he was Minister of Housing. Those who know at first hand the problems of the stress areas will acknowledge how greatly this one single measure will improve the immediate situation.
Another step that we shall be taking relates to the so-called first refusal option. The House may recall that many of my hon. Friends and I "greatly regretted" the previous Government's abandonment of this proposal. I also said that we would seek to restore it in Committee, had the Committee stage of the previous Bill taken place. Therefore, our Bill as published may fall short of expectations on this point, but before hon. Members criticise, I would ask them to await what I have to say about Part IV of the Bill.
Our final criticism of the lapsed Bill was that it proposed too fragmented an approach to our urban problems and that, to quote the Tenth Report of the Expenditure Committee, housing action areas
So we judged, I am sure rightly, that it was better to go ahead with the Bill in its present, more limited, form. Nevertheless, we shall seek to amend it in Committee with a view to taking at least the first steps towards the adoption of a wider and more imaginative concept of urban action areas, even though the full implementation of that objective must await later legislation. The Under-Secretary will give details later of what we shall propose. Our amendments should enable local authorities to deal with bad housing more flexibly than would be possible if they had to rely solely on a chequerboard of small housing action areas.
We shall, for example, propose a new power for local authorities to declare what has been called in some Press discussion control areas—I do not like the word, since it does not accurately describe what we have in mind; I prefer some such phrase as safeguard areas—where comprehensive treatment cannot be applied right away. This will be an acknowledgement, none the less genuine for being extremely belated, of what the Milner Holland and Layfield Reports both recognised to be necessary.
Housing stress, after all, is not confined to those housing action areas which a local authority, acting within its resources, might manage to declare at any given moment. Not only but especially in Greater London we need the means of preventing stress from just rippling out, with the problem merely being transferred from one area to the next. My hon. Friend will develop some of those ideas when he winds up the debate.
When it comes to London, will the Secretary of State's hon. Friend make certain that these powers go to the London boroughs rather than to the GLC?
I shall, in a different context—but it will be highly relevant—have something to say about the GLC and the boroughs later, although I am not certain that it will give the hon. Gentleman total pleasure or satisfaction.
Before dealing with the main provisions of the Bill, I should like to mention two related issues. First, we have not included the previous Government's proposal for the compulsory management of office premises which have been standing empty for many years. As I said in our previous debate, those proposals would not have tackled the problem in the right way. They were far too generous to Mr. Hyams and people in that position and involved procedures infinitely liable to legal obstruction. Our more radical intentions were spelled out by the Minister for Planning and Local Government in the debate on London on 29th April, when he gave a clear warning that if large office blocks are not substantially occupied very soon, they will be dealt with in the new legislation which we are preparing in the matter of development land and public ownership.
The other issue, a difficult one, concerns the preferential rate of improvement grant in the development and intermediate areas. Many local authorities and hon. Members from all parties have urged an extension of the terminal date and I added my voice to theirs in the debate on 5th February. The problem is of the previous Government's making. They were painfully slow to wake up to the implications of a scheme with a rigid terminal date of the sort that they introduced.
The problem has, of course, been badly compounded by the consequences of the three-day week. Indeed, had the electorate not voted both the Government and the three-day week simultaneously out of existence on 28th February, the problem of a June termination date would be far worse than it already is.
We have been able to go some way to meet the problem. As I said in answer to my hon. Friend the Member for Accrington (Mr. Davidson) last week, I shall propose an amendment to this Bill to allow those private owners whose applications were approved at the 75 per cent. rate on or before 30th September last year to receive grants at that rate notwithstanding that the work is completed after 22nd June this year. This, of course, means that those who received grant approval after 30th September 1973 will receive grant of 75 per cent. only if the work is finished by 22nd June—otherwise they will receive 50 per cent. grant.
I would have dearly liked to go further. The reason I could not is, quite simply, money. If we had set the qualifying date as the end of October, and not September, it would have cost an extra £8 million; if November, £16 million; if December, £24 million, and so on. In the economic situation which we inherited, increases in public expenditure of this size would inevitably mean corresponding cuts somewhere else. I did not think it right to make cuts of this order of magnitude in other parts of the housing programme, and particularly not in those parts directed to the problems of the stress areas. As always, it is a question of priorities, and in our view, the stress areas must come first.
I turn to the Bill itself. Parts I to III relate to the voluntary housing movement and are substantially in the form proposed by our predecessors in their Housing and Planning Bill, and which we generally welcomed at the time. They are an integrated package: new financial assistance to secure an expansion of voluntary housing, balanced by a rigorous registration scheme to eliminate abuse of this financial assistance by speculators or others more concerned with private fees than public well being, all under the guidance and stimulus of a much strengthened Housing Corporation.
I have always been a firm support of the voluntary housing movement more so, perhaps, than some people in my own party. I believe it would be intolerable if we ever reached a situation in which only two forms of house were available in this country—in which everyone either had to become a tenant of a local authority or had to buy his own home. Monopoly is as undesirable in housing as it is elsewhere.
But this does not mean—here, there is a difference of opinion—that we endorse the policy of our predecessors towards housing associations. Expansion, yes: but it is utterly misconceived to regard the voluntary housing movement as in any sense an alternative to municipal renting. Local authorities alone have the capacity and the responsibility to tackle the major housing needs in their areas, and they will increasingly become the principal suppliers of rented accommodation.
Housing associations can and will have a growing rôle in supporting local authorities, particularly in meeting special needs and in the worst areas of housing stress. They also have a rôle in the extension of social ownership of rented accommodation. But in all this they must complement and supplement local authorities, not supplant or compete with them. I also see a rôle for housing associations in developing and experimenting with new forms of tenant participation in the management of their dwellings. This is an area in which they could provide a much-needed stimulus.
As regards the Housing Corporation, I welcome the progress being made by Lord Goodman, and particularly the close co-operation which he has established with local authorities and the construction industry. We endorse the measures proposed by the previous Government to enable the corporation to control the activities of housing associations in the public interest, and to initiate their own schemes where necessary.
Part IV of the Bill deals with housing action areas. On Second Reading of the previous Bill I described housing action areas as a "potentially exciting conception", but I was critical of what I called the "attenuated version" of the concept which appeared in the previous Bill.
I now want to point to the specific changes which we have already made in the Bill to meet the criticisms which we expressed in Opposition and to anticipate some further changes which we shall seek to make during the passage of the Bill.
As I have said, we shall not, even by process of later amendment, be able to make all the changes which we would have liked to make. But I am certain mat the right step is to get on to the statute book as soon as possible a measure which would at least allow a start to be made on the worst of our problems. Housing is a subject much exposed—to put it mildly—to legislation and debate. I am sure that we shall return again and again to this major issue of our time: how to deal more effectively, more quickly and in a less piecemeal fashion—and, I hope, in a more human fashion—with the social, physical and environmental problems thrown up by bad and inadequate housing.
In the later clauses to be introduced, does my right hon. Friend propose to introduce a clause dealing with acquisition by local authorities of certain houses? If so, what is to be the basis of compensation? Many of us hope that it will not be based upon market value. I should like to remind my right hon. Friend that Labour's 1973 programme on this point—which he helped to draw up—made the valuable point that compensation to landlords would in no way reflect the way that inflation has affected housing, because if exorbitant prices were paid by local authorities to private owners for acquiring property, the consequential rents would be so high that most local authorities would not want to municipalise in that way. This is an important matter, and I should be glad to know whether it is likely to be introduced later in the passage of the Bill.
I well remember the long discussions by my hon. Friend and I and others when in Opposition on the basis of compensation, when we were pursuing a policy of municipalisation. As far as I am aware, what is being suggested is within the framework of what we said in Opposition. But if there is any doubt about that, I shall have the matter checked and I shall ask my hon. Friend the Minister either to reply today or to let my hon. Friend know later. As my hon. Friend knows, I take as much interest in this matter as he does. The object of the exercise is that we want a basis of compensation which is fair and not exorbitant.
I come to the two changes that we have already made. First, we welcomed the recognition by the previous Government that there was no longer a major rôle for the private landlord and that social ownership was the way ahead, particularly in the stress areas. But we on the Government side of the House remain convinced—and the House will find this reflected in many of the changes that we are making—that it is above all through local authority action that the worst housing areas can be saved from further physical decline and social misery, and then he permanently improved. We have therefore removed from Part IV of the Bill the provisions under which the Secretary of State would have had the power to direct local authorities to dispose of property they have acquired in housing action areas to housing associations. This is not a power that I want. Indeed, it is not a power which local authorities or, incidentally, the housing associations want. I doubt whether anyone seriously concerned with stress areas will mourn its passing.
Certainly I hope that local authorities, particularly in housing action areas, will regard the transfer of properties to registered associations in which they have confidence as one sensible means of sharing the load. But I want them to do so because they recognise the value of the help which the associations can give and not because of the operation of a provocative statutory formula.
The second change that we have made—here I allude obliquely to the point mentioned by the hon. Member for Hampstead (Mr. Finsberg)—is to give to the GLC, subject to a reference to the Secretary of State, the power to declare a housing action area without the consent of the London borough concerned. The provisions are to be found in Clause 46 and Schedule 4, and a similar provision is made elsewhere in respect of general improvement areas.
This, as many London Members will know, is an issue on which set attitudes have been taken up for some time past—for various reasons on which I prefer not to dwell today. But my hon. Friend the Minister for Housing and Construction—himself a London Member—and I think it quite inevitable, as well as desirable, that the GLC should have this as added power. The reasons are simple, and certainly not political in any narrow or party sense. The GLC has a rôle, as a strategic housing authority, not only of influencing policies over the whole of the London scene but also of implementing its views of the right priorities, and it has certain resources which ought to be used. There is quite enough housing stress in London for which the GLC, the London boroughs and the City all have their work cut out, without quarrelling over who does what.
I hope and expect that the GLC and the boroughs will agree on which areas should be declared, and by whom; and that, whoever declares them, each authority will work with and help the other. The small print of the procedures provides the maximum scope for agreement. But I want to make this quite clear: if agreement is not forthcoming in cases which clearly call for action, the powers which the Bill gives to the GLC are meant to be used, and I shall be concerned to see, in such cases, that they are in fact used.
There are two other specific changes which we shall seek to introduce at a later stage and which it is right that I should outline on Second Reading. I shall deal with one fairly fully, and ask my hon. Friend to develop the other when he winds up the debate.
One of the first things that we did on coming to office was to look at the first refusal option. I remind the House that this was originally designed to give first rights over rented property to housing associations—bodies which do not have compulsory purchase powers—rather than to local authorities. This priority for housing associations, as I have indicated, is not the approach which we on the Government benches favour.
But even to introduce a clause which gave first refusal to local authorities would, we discovered, have been appallingly difficult to draft, as the hon. Member for Southend, West (Mr. Channon), if he were present, would no doubt bear out. It would have meant delaying the introduction of the Bill, and we judged that that was not worth while. So what we decided to do instead was to try to find a different way of achieving the same end. The end, in our view, is to make sure that local authorities are in a position to know which tenanted propertie in housing action areas are likely to come up for sale and where tenants are at risk, and to consider what action to take in the cases where it is most needed.
At present, local authorities lack a systematic means of identifying the urgent cases in which they should use the wider powers of compulsory purchase made available to them in Clause 41 and, indeed, the larger resources made available to them in the Bill and as a result of Circular 70/74. We shall, therefore, suggest in Committee provisions which would require anyone, other than an owner-occupier, disposing of an interest in residential property in a housing action area or the new proposed safeguard areas to notify the local authority prior to committing himself to the disposal; and provisions which would make it an offence to fail to fulfil this requirement to notify.
In addition, anyone giving a tenant notice to quit would be required to notify the authority. In either case, the authority would then know what was afoot and be in a position to decide what action to take—including itself offering to buy the property or making a compulsory purchase order on it.
I shall not abandon the idea of a first refusal option, but if it proves necessary and practical, in the light of the experience we gain from our present proposals, it must be for future legislation. Meanwhile, I would claim that the provisions I have outlined have the same basic object in view. The fact that the monitoring of disposals of tenanted property will apply not just to the relatively small housing action areas but to the wider safeguard areas will provide a new and important protection to tenants. This is probably a sensible compromise solution to a particularly thorny problem and will give the local authorities most of what they want.
We shall also propose a modest increase in the amount and range of the grant provided for in Clauses 43 and 44. My hon. Friend will be giving more details on that when he winds up.
Parts V and VI of the Bill contain the new and strengthened arrangements for general improvement areas and house improvement grants. I have for long been a passionate opponent of indiscriminate clearance, which I believe has gone too far in many areas of the country. I believe that indiscriminate clearance can be appallingly destructive of existing communities and is frequently a very expensive solution. Above all, it often stops people living where they want to continue to live—in houses which, for all their faults, they still treasure.
It is right therefore that we should introduce measures which will maintain the drive on house improvements especially in the private sector where the worst conditions are concentrated. We shall in due course follow this up with advice on how local authorities should set about devising sensible renewal strategies in their districts making use of the new powers to maximum advantage. However, at the same time action is long overdue to stamp out the abuses of the grant system which have emerged since the Housing Act 1969 was enacted and on which the last Government for years showed inexcusable complacency.
The Bill provides that grants will not henceforth be available for improving second homes or for developers who wish merely to improve houses and sell them at a profit. Grants will go only to owner-occupiers and landlords who undertake to keep their dwellings available for letting. Moreover we have tightened up the conditions which are to be attached to grants, going beyond what the previous Government were proposing. They will now apply outside housing action areas for five years, instead of the three years originally proposed, and inside housing action areas for seven years. Beyond that we propose to make a further change in Committee designed to prevent landlords in housing action areas and general improvement areas, from improving their property and then charging their furnished tenants a vastly inflated rent. There is also provision in Clause 55 to stop discretionary improvement grants going to the more expensive types of owner-occupied property, and in Clause 49 to stop grants going to houses built within the last 12 years.
Improvement grants are the carrot. They will be backed by the stick of powers of compulsory improvement in Part VII. These powers, too, will be stronger than the earlier proposals in that they now apply to certain owner-occupiers in general improvement areas; and local authorities will be able more readily to use their default powers where they believe that the owners do not intend to carry out the required work within the time specified.
I still believe that in areas of stress it would generally be more sensible and appropriate for local authorities to use their powers of compulsory purchase—which the Bill will also strengthen—to deal with sub-standard housing, especially when associated with the threat of harassment and the risk of homelessness, rather than use compulsory improvement powers which would still leave dwellings often in the hands of inadequate and irresponsible private landlords. But in spite of my own feelings I am prepared to accept the view expressed by many local authorities that it would be helpful to them also to have this additional power of compulsion, which would allow them to make a more flexible response when deciding how to treat a variety of bad housing conditions.
Part VIII contains a number of miscellaneous but important provisions, which are basically unchanged from our predecessors' Bill.
The Minister said that the grants were abused under the previous administration. I have raised with him a number of times in the past the possibility of repayment of grant if a property changes hands. I think I am right in saying that was abolished by a Labour Government in 1968. I do not see the proposal in the Bill, but the right hon. Gentleman has mentioned several amendments that he wishes to make in Committee and it may be that one of these will cover the point. Does he propose to reintroduce the earlier arrangement whereby if a property changed hands after an improvement grant was made—for instance, if it were sold within 20 years, as I believe was the previous term—repayment was required? That seemed a very sensible arrangement which prevented the type of abuse the right hon. Gentleman has in mind.
I should like to look at that, but my firm impression is that the very much stricter conditions and provisions in the Bill will render that proposal unnecessary. However, I shall ask my hon. Friend who is to reply to the debate to say a word on the matter.
I do not wish to take up much more time since a large number of hon. Members wish to speak. When I took office I made it clear that the theme of my Department's work would be to contribute to the Government's overall aim of greater equality. The majority of our population are now comparatively well housed. For them the housing situation has improved over about the last 10 years though even to them the disastrous housing record of recent years—in terms both of the cost of housing and the number of houses—has been a major setback. A large minority—perhaps one household in five—still live in accommodation of a standard which cannot be tolerated in a civilised society, however. Every attempt to deal with the problems of this minority through the mechanism of the market, or by propping up private landlords, or through purely voluntary incentives to improvements, has failed and failed conspicuously.
Some progress has been made by public action but it has been painfully slow. It is no comfort to the mother of a young family to be told that her slum house is scheduled for clearance and redevelop- ment in 10 years' time, or to know that the benefits of a general improvement in housing standards will start to trickle down eventually. And there are thousands of such mothers.
We need to bring about an improvement in living conditions quickly, even if the help is sometimes by way of a holding operation. And we must also be sure that whatever help we make available reaches those genuinely in need, and is not diverted into uses of secondary importance—certainly not into gross abuses of a type experienced in parts of inner London in recent years.
The Bill addresses itself to these problems. Of course, it will not provide a final solution. But incorporating as it does the improvements which I have mentioned, and viewed in the context of our other initiatives on the housing front—on rents, on mortgage finance, on security of tenure for furnished tenants, on total public expenditure, and in Circular 70/74—it will enable us to move at least one step forward. I commend it to the House.
4.37 p.m.
May I say how sorry we are that the Minister cannot be here and that we are even sorrier for the reason, but we hope that he will soon be fully recovered. In these circumstances perhaps it would be appropriate to express sympathy for the Under-Secretary who has had to take over at the last minute. However, we do not feel that this Under-Secretary will need such expressions of sympathy since he will no doubt do very well without them.
The Secretary of State began with a good explanation of why he had done a somersault on the Bill. He moved a fierce amendment to the Conservative Government's Bill—an amendment which sought to decline to give the Bill a Second Reading, setting out the reasons. The right hon. Gentleman then went on to a number of things which are not quite within the Bill concerning wider housing problems. He mentioned public expenditure and confirmed what I thought must be a misprint in the Bill. In the Conservatives' Housing and Planning Bill the Financial Memorandum stated that the amount of money involved would be £106 million within a few years. In the Bill before us it is put at only £102 million, and the loss falls upon the Scots. However, the Bill applies to Scotland and I can point out the causes concerned.
I think that there must be a genuine misunderstanding here. Some clauses relate to Scotland, but there will be a special Scottish Bill on the same subject which means that a number of provisions of the previous Government's Bill relating to Scotland have been removed. Therefore, Scotland will receive £2 million under the Bill before us and another £4 million under the separate Scottish Bill.
It is good to see that the Scots will not be deprived.
The right hon. Gentleman went on to talk about the need to set his housing policy in a generally rising programme. The right hon. Gentleman returned to that matter towards the end of his speech when he pointed out the difficulties that various Governments have had in trying to achieve a generally rising programme. I think that he knows as well as I do that the real problem has been to get some kind of equilibrium between the supply of finance, the supply of homes, the supply of materials and the supply of labour. No Government have ever managed at one and the same time to get those four things in balance on a steadily rising trend.
All Governments have gone through a series of peaks and troughs instead of a general rising slope. Labour hon. Members need only to look at the figures. I could give a dissertation on them but I shall not do so.
The right hon. Gentleman will be very much aware that the previous Conservative Government followed the policies that are set out in the 1969 Act of transfering some of the effort from total clearance programmes to improvement projects. I noticed that my hon. Friend the Member for Southend, West (Mr. Channon) actually paid a tribute to the right hon. Gentleman's attitude towards that matter. I sometimes find that tributes paid by my colleagues are not always returned by Labour right hon. and hon. Members even though we have followed their policies. Indeed, we followed their policy and had great success with the number of improvement grants and the expenditure upon them. I think that that policy improved the housing conditions of many people.
As the right hon. Gentleman knows, the cost of maintenance places a considerable demand on both resources and finance. One of the reasons for the reduction in the number of new houses built was that there had been a heavy demand upon resources and finance because of the success of the improvement programme. I am afraid that I am not making the speech which my notes contain but one that flows from the speech that was made by the right hon. Gentleman.
The right hon. Gentleman said that he is anxious to add to the council housing stock, or words to that effect. In the United Kingdom we have a higher level of council housing, I believe, than anywhere in Europe. Council housing already represents 30 per cent. of all housing. Many of us take the view that while there are reasons from time to time for a local authority to purchase houses from the private sector, there are no compelling reasons for an authority to retain them or to continue to increase the number of houses under its control. I hope that authorities will not retain such houses, thereby getting an ever-increasing proportion of the total housing stock. I do not believe that that would be good for some of the housing areas or good for the country as a whole.
The right hon. Gentleman referred to the freezing of residential rents, which I assume will end in December. Perhaps the Minister who replies will make clear the action that I understand the Government propose to take under the Housing Finance Act 1972 regarding extra subsidies for the housing associations, which have been affected by the rent freeze. I understand from a letter to my hon. Friend the Member for Hornsey (Mr. Rossi) that subsidies available under the Housing Finance Act 1972 will not be withdrawn. If that is so, it would be as well if we could have it on the record.
When the Furnished Lettings Bill comes up we shall consider it and comment upon it. I noticed that the right hon. Gentleman said that if he had had more time for preparation it would probably be a rather different Bill. If I might gently remind him, his right hon. Friend the Secretary of State for Employment appears to have had plenty of time for preparation and he had introduced a different Bill upon which we shall be voting this week. It is interesting to observe that the right hon. Gentleman's right hon. Friend had time to prepare when he did not.
The right hon. Gentleman has referred to the private landlord, to local authority action and to the GLC. I intended to deal with those matters in the comments which I shall make on the Bill.
I agree that bad housing conditions are at the root of many of the problems in our society. It so happens that I had occasion the other day to turn out some election addresses. They went back to the first election I ever fought, in 1950. I gathered together a clutch of election addresses written by people in my party and from the Labour Party. All of them said almost exactly what we are now saying about housing—namely, that it is our objective to provide a decent home for every family. Some of the addresses could have been written today. They are just as appropriate now as they were then. It is still our objective to provide a decent home for every family. That objective does not vary from one side of the House to the other.
We now know some of the problems of meeting that objective. We know, for example, of the problems of houses falling into decay faster than they can be replaced or renewed. We know some of the problems arising from the faster rate of household formation which means that we need more houses for the same number of people. However, our aims remain the same—namely, to secure a decent home for every family. Progress will be adjudged by the progress that can be achieved, subject to the economic circumstances. I think that the right hon. Gentleman will probably find us reasonably understanding upon that. Perhaps he will find us rather more understanding than we found the Labour Party when the previous Conservative Government were facing similar economic difficulties.
I now turn to what the right hon. Gentleman said on Tuesday 5th February 1974. He made a pretty spiky speech. He can make them sometimes. The right hon. Gentleman seems surprised. He has tempered some of his comments a little and perhaps some of his ideas since then. I thought that his speech was spiky even if he did not. He said:
We there have central control, direction, nationalisation, and municipalisation. There is the whole lot, one after another. I took the phrases out of the right hon. Gentleman's outline of policy and put them together. I believe that it was because the right hon. Gentleman's party had embarked on such a policy—and they would have introduced it if they could have done so—that they attracted fewer votes in the General Election than the Conservative Party. The right hon. Gentleman cannot argue that his party did not receive fewer votes. That happened because the policies to which I have just referred are not generally wanted by the people. Perhaps the Labour Party would have done better in the London borough elections but for similar reasons.
The truth is that the right hon. Gentleman welcomes the power of compulsion. He likes central direction. The Socialist immediately thinks of solving a problem by Government taking power and property and keeping it, and not by helping people to solve the problem by themselves and then handing back property.
In the private rented sector the Labour Party's tactics have been the same for years. By a series of measures it has made it impossible for a landlord properly to maintain his property. The landlord's only way out of his difficulty was to sell the property. When that was done the Labour Party complained because the private rented sector was declining. It was then said that either central or local government must take over.
The right hon. Gentleman must know that the private rented sector could not flourish because it could not get rents sufficiently high to enable it to carry out proper maintenance work. The right hon. Gentleman must know the book that is almost a bible on housing matters which has been published by the National Economic Institute of Economic and Social Research entitled "Population Trends and Housing" by P. A. Stone. I shall quote one paragraph from that document. The right hon. Gentleman would probably quarrel with me if I used the same words. At page 300, it says,
I turn to the Bill, taking the question of housing action areas first. The emphasis upon this form of action stems from the right hon. Gentleman's 1969 Act. I want at the outset to give some figures about the success of the improvement grant policy as operated by the last Government. In 1969 there were 108,938 improvement grants in England and Wales. In 1973 the number had risen to 361,000—a considerable success story.
That is the second time the right hon. Lady has referred to the success of improvement grants by giving the number of improvement grants or the amount of money spent. Is she aware that the Expenditure Committee's report on improvement grants brings out the point that in relation to my borough of Islington improvement grants resulted, in an area which was examined in detail, in a reduction in the number of dwellings available for rent?
Taking the country as a whole, the improvement grant system has resulted in a very considerable increase in standards for those who live in the properties which have been the subject of improvement grants. I am sure that the hon. Gentleman will be just as concerned as I am that that should be so. We debated London last week and I dealt then with the actual number of improvement grants in the Greater London area and I mentioned one of the Islington surveys which I shall mention again today. I see that my hon. Friend on the Front Bench has a copy of it.
The policy of improving older houses receives a further boost from the Bill. The reply of the last Government to the Tenth Report from the Expenditure Committee, which was so ably chaired by my hon. Friend the Member for Hemel Hempstead (Mr. Allason), who has sent his apologies for being absent today—he has an important constituency engagement—was that greater selectivity is the keynote.
Hear, hear.
The whole housing action area policy is greater selectivity, but it is going in the opposite direction to the right hon. Gentleman's rent freeze policy, which is blanket subsidy regardless of need. I am glad to see that the right hon. Gentleman does in some areas still agree that selectivity is the keynote, because it is the basis of the Bill's policy. I warmly support the argument as it applies to this legislation.
I know that on the last occasion the right hon. Gentleman was critical of the small number of houses in housing action areas. This is dealt with, not in the Bill, but in the White Paper which supports it. The idea of having a comparatively small number of houses—say, 400 to 500—and calling that a housing action area rather appealed to me, because in such a small area it should be possible to act quickly, see the improvement and then move on to another area.
Admittedly, wherever any improvement is carried out the contrast with the area beside it, where there is no improvement, is sharp. This will be so if any progress is to be made in any area anywhere in the country. I thought that it was better to have smaller areas, but I notice that the Bill—both the previous Bill and this Bill—does not circumscribe the size of the area. It gives only the criteria, by which the area must be defined. This makes it easier to apply the Bill to the conditions actually found.
The right hon. Gentleman has made one fundamental change, as he pointed out when he spoke on the part of the Bill dealing with the housing action areas. I rather disagree with that change. The old Clause 40 provided a kind of quid pro quo for the compulsory purchase powers given to local authorities. Comparatively simple compulsory purchase powers were given to local authorities, but a return condition was set out in the old Clause 40(3) which is now omitted—
Has the right hon. Lady discussed this with the National Federation of Housing Associations? Is she aware that the view of the federation is that it would make its position very much more difficult if this power existed and that its relations with local authorities would deteriorate as a result?
I wonder why the federation thinks that relations between local authorities and housing associations would deteriorate merely because there was a power to hand back houses to housing associations. Without that power it brings—I suspect that this is what the right hon. Gentleman wants—progressively more and more property into the ownerships of local authorities.
No.
I rather thought from what the right hon. Gentleman said—I will read it tomorrow—that that is what he is after in his general policy.
I turn to the clauses dealing with the Housing Corporation. In his speech on the previous Bill from this Dispatch Box the right hon. Gentleman appeared to see the Housing Corporation as a kind of great public enterprise housing authority, and we naturally fear that he will use it for that purpose. Earlier I quoted some of the things he said about it.
Our purpose in expanding the corporation's rôle is set out in the White Paper,
"Widening the Choice":
The right hon. Gentleman has revealed a good deal more of his approach in this debate. He says that there should be a more limited rôle for the voluntary housing movement than the Opposition envisage and a much larger rôe for local authorities.
Clause 6 affects directly the powers of the Housing Corporation. The right hon. Gentleman will remember that in response to interventions from my hon. Friends during the earlier debate, my hon. Friend the Member for Southend, West expressed doubts about the clause, which is phrased in wide terms. He said that he was beginning to have doubts about Clause 6 and that he would give careful attention to the matter during the passage of the Bill. The right hon. Gentleman will remember that Clause 6 says that the corporation may with the consent of the Secretary of State subscribe for or acquire any securities of a body corporate and promote or participate in the promotion of any such body. This is an extremely wide power. My understanding of the purpose of the power was that it was to enable the Housing Corporation to purchase a company consisting of, say, a block of flats rather than to purchase the land and flats themselves. It is sometimes a much simpler operation to purchase a whole company than to attempt the conveyance of the land and the several flats concerned. That is a much more limited purpose than the words of the clause and my hon. Friends will be giving further attention to this clause in committee. A number of them would rather not have it in at all than leave it in its present, virtually unlimited state.
A problem may arise in relation to Clause 10(3) which says that the corporation
Regarding the corporation building houses for sale, the right hon. Gentleman referred to the excellent relations which Lord Goodman created between himself and the housing construction industry. My hon. Friend the Member for Southend, West in the last debate pointed out that Lord Goodman had already had a number of talks with the building industry to see whether the corporation could offer a stable load of work on behalf of the housing associations to help with the forward planning of the building industry, all of which would seem to be basically a good idea.
But the right hon. Gentleman does not seem to see it in quite the same way because he apparently wants a good deal more direct labour building and perhaps not so much by the house-building industry. That does not seem the best way to secure the confidence of that industry. I hope that the right hon. Gentleman will be a bit more enthusiastic about helping the housing association movement than he has been.
I referred a moment ago to a document "Tomorrow in Upper Holloway", produced by Shelter. Page 14 contains a chapter entitled "What People Want". I appreciate that the survey referred to in the document was limited—I think it related to about 370 households, and thus it was a small survey, but one of the conclusions on page 14 was that it was striking that 40 per cent.—of the people who were asked about housing—put renting from a housing association or tenant co-operative as their first choice. Admittedly, a number of them had not much experience of that, but it is significant that there were a large number of people who would rather go to a voluntary housing organisation or tenant co-operative than to the local authority.
This means that there is a big rôle for the voluntary housing movement to play, if the right hon. Gentleman will allow the movement to play it. I doubt whether he will, because I notice that his Department's circular on local authority housing programmes puts all the emphasis on the acquisition of more and more houses by local authorities by one means or another. The main section of the circular was on municipalisation, a policy already causing a great deal of disquiet in areas inside and outside of London.
People see local authorities buying up an empty house at great cost in a road in which there are similar houses. The local authority puts in a tenant paying a small rent and he is surrounded by people who are paying high outgoings and rates and who therefore have a sense of grievance and injustice. Such people are making their feelings known to us.
Looking at the end of the circular, it seems to me that someone on seeing it had said, "Oh, goodness, we must say something about voluntary housing organisations". It is a long circular and the voluntary housing movement gets five lines of treatment at the end. I hope that by the time the Bill goes through the right hon. Gentleman will have agreed to give this movement a bigger rôle than he at present appears to intend.
The right hon. Gentleman also referred to improvement grants. One might have thought from what he said about the provisions in the Bill that they had come from his party's policies and had not been included in the previous Government's policy, but the number of changes in the part of the Bill dealing with improvements is comparatively small. Most of the clauses are those which were initiated by the previous Government, for instance the decision not to give improvement grants for second homes. It is also proposed that grants will not be given where the house will be for sale but will be given only where the house is to remain in owner-occupation for five years, or is to remain let for five years, after a grant has been approved. The previous figure was three years. The Government have put it up to five years. If a house does not remain in owner-occupation for five years, or remain let for five years—seven years in housing action areas—the grant will be repayable at compound interest. The only change proposed by the right hon. Gentleman is to alter the three-year condition to five years.
However the right hon. Gentleman has made a further change regarding improvement grants, namely, that in cases in which two or three properties are being converted into one, eligibility on a test of rateable value will be by reference to the total rateable value on the properties and not to the rateable values of the single properties. There are minor changes in the clause referring to this matter.
My hon. Friend the Member for Hornsey did a marvellous service by going through the two Bills and by presenting me with a Bill which had every change marked. I note that most of the changes regarding improvement grants are due to the previous Government and have merely been modified by the present Government.
I understand the right hon. Gentleman's constraint about going further than he has gone in giving 75 per cent. improvement grants for a longer period. He has set out his reasons. He would like to go further on this but the Government consider that stress areas must come first. I must say in defence of my right hon. and learned Friend the Member for Hexham (Mr. Rippon) that that was exactly the reason he gave for not being able to take any action regarding extending the period for 75 per cent. improvement grants.
No doubt the right hon. Gentleman has done what he can in this respect—and I understand the constraints on public expenditure. Realism usually hits a Government when they get into power, but it does not always hit an Opposition. However, this Opposition are still very conscious of the public expenditure problems. The committee on improvement grants has put in some hard work and almost all its recommendations have been adopted.
I very much welcome the continuation of the clauses which we introduced, Clauses 103 and 104, regarding disclosure of a landlord's identity and the power to challenge service charges. My hon. Friend the Member for Hampstead (Mr. Finsberg) was foremost in trying to secure such provisions, which we accept and welcome.
The purpose of the Bill is to help those in the areas of greatest need. I hope that that aim will be fulfilled in the spirit in which we introduced our Bill. I understand that the right hon. Gentleman wants to make a number of changes and that his ideas about the administration of the Bill are rather different from ours.
Indeed, I hope that we are not being too co-operative. In this Parliament it is difficult to know what to do: if one is not co-operative, one is in trouble; if one is co-operative, one is in trouble. If I find that we are being too co-operative about the Bill, I assure the right hon. Gentleman that I do not find it difficult to become difficult—it is something that happens to come very easily to me.
For the time being, we shall reserve judgment, as what is before us is predominantly our Bill with only one or two changes, which some of us do not like. We shall do our best to support it and to scrutinise it in Committee in the hope that it will pass into law.
5.11 p.m.
I start by declaring an interest, not a financial interest, I assure the House, but as a member of the board of Shelter, a member of several housing associations, and the solicitor to one.
Like the right hon. Lady the Member for Finchley (Mrs. Thatcher), I have found it a little difficult to prepare a speech on the Bill because I have needed so much information about what else the Secretary of State intends to introduce and what he proposes to do in Committee. We also need to know the terms of the proposed security of tenure Bill.
Although I share the right hon. Lady's difficulty I hope that my speech will be a little more constructive than hers. In particular, I was sorry to hear her indicating a hankering to go back to increased freedom for private landlords. That is an attitude that has been painfully educated out of successive Conservative housing Ministers and I sincerely trust that the right hon. Lady will remain in her position on the Opposition Front Bench long enough to learn what her predecessors had to learn.
The additional provisions that we are to have in Committee and the additional Bill for the security of tenure of furnished tenants are essential to evaluating the Bill. As the Bill stands, it will be rather difficult to give it much in the way of enthusiastic support. It is a Bill which, coming from a Conservative Government. one would regard as innocuous, but, coming from a Labour Government, without fairly extensive amendment would have to be regarded as tragically inadequate. We are assured that there is to be security of tenure for furnished tenants and we shall study with great interest my right hon. Friend's proposals meant to be a substitute for the right of a local authority to have first option. I had hoped to see a greater extension of the compulsory purchase powers than was provided in the Conservative Bill.
I hope that the Under-Secretary will be able to tell us the extent to which the conditions attaching to grants will genuinely ensure that premises remain available for the tenants who really need them. As the Bill stands, its provisions will enable a landlord to get an improvement grant, to improve the property and then to let it furnished. Although I shall not quote the exact words I recall my right hon. Friend the Secretary of State referring in an earlier debate to the trend being not to buy, evict, improve and sell, but to buy, evict, improve and let furnished. It would be a tragedy if the effect of the Bill were to perpetuate that possibility.
There are a number of useful measures in Parts I, II and III. I shall be glad to see the extension of the Rent Act security to the tenants of unregistered housing associations, but I should like the tenants of all housing associations to be given security. The provisions of the Rent Act which enable a landlord to evict a bad tenant for breaking a covenant, or for being in arrears with the rent, or when a housing association or local authority is providing alternative accommodation, give associations all the powers they need to carry out their function properly.
However, there are instances, even with associations likely to be acceptable for registration, of the abuse of power, not because of any financial incentive, but because of indifferent management, or an insensitive approach. Sometimes these powers are used harshly or unsatisfactorily, and it would be desirable if housing associations in all cases had to prove to the court that it would be reasonable to make an order, as would be the case if Rent Act security extended to all housing association tenants.
At the same time, I should like normal Rent Act security to extend to all local authority tenants. Although the great majority of authorities are very good landlords, certainly some act as arbitrarily as the bad housing associations or indifferent landlords, and the protection of the courts for their homes should be available to all tenants.
Registration is relevant not only to security of tenure but to availability of grant. I hope that my hon. Friend the Under-Secretary will indicate the sort of criteria by which the advisory committee will judge applications by housing associations for registration. I hope that the criteria will include the provision that an association includes representation by its tenants, including a satisfactory system of the representation of tenants in the committee of management. I hope that there will also be a provision giving housing associations the right to appeal against refusals to grant registration.
I should like there to be an amendment to extend eligibility for grant under Clause 28 to existing projects. This morning I was talking to the Secretary of a housing association who told me that, as a result of rising interest rates and the large increase in the cost of central heating oil, his association was finding it difficult to meet deficits on existing projects. As Clause 28 stands, only a limited number of old projects would be eligible for the deficit grant. A local authority has the benefit of the rising costs allowance, but a housing association has no comparable benefit.
I should also like an amendment enabling local authorities to receive grant assistance to improve their own dwellings to something below Parker Morris standards. I sent on to my hon. Friend the Minister for Housing and Construction a letter from the chairman of the Camden Housing Committee drawing attention to the difficulty of getting grant assistance for what Camden calls its "lash ups," a scheme enabling it to provide a very much larger number of dwellings at a faster pace than would be the case if they were all improved to Parker Morris standards. My right hon. Friend will agree that it is better to have many houses rapidly improved to reasonable standards than a few houses improved to very high standards, and I hope that he will look at the proposals that I have sent to his hon. Friend. These may be Committee points, but it is important to mention them now, because if not it will be difficult to get them adequately considered in time for amendments in Committee.
The main point of major principle that I want to discuss is whether the concept of a housing action area is really useful as a method of giving preferential treatment to grant applications. I very much doubt it. A slum is a slum anywhere, whether in a housing action area, a general improvement area or anywhere else. The discrimination involved in paying a larger rate of grant to someone on one side of the street than to someone else on the other side is not justifiable. I do not see that any advantage comes from it. I see considerable advantage in the retention of the preferential rate of grant for assisted areas, but this is a matter of regional employment policy rather than housing policy. I see little advantage in discrimination in favour of housing action areas so far as grants are concerned.
What is essential—for this purpose, the housing action area concept and the control area concept will be useful—is to preserve and increase the stock of rented housing. I regard it as vital to bring the existing stock of tenanted housing into public or housing association ownership.
Nothing else is likely to prevent its continued decline. The provisions in the Bill as it stands and in our existing legislation to preserve the stock of rented housing are quite inadequate.
The certificate of availability for letting under Clause 53, by implication, and under Clause 67 expressly, includes furnished lettings as the kind of future letting which would be acceptable. Thus, it would be possible for a landlord to get his improvement grant—depending on the amendments introduced in Committee—and subsequently to re-let the property on a furnished tenancy at a very high rent, which would completely defeat the purpose of the Bill. I see no justification for spending public money on that. I draw attention also to the fact that the power under Clause 67 to impose grant conditions are permissive only. The word is "may", not "shall". I hope that that matter will be considered before we reach Committee.
I am following the hon. Gentleman's argument with interest, but I do not find attractive the suggestion that one should eliminate the private sector from furnished accommodation. The hon. Gentleman knows London, including the central areas, very well. In the London area today there is an acute demand for furnished accommodation, especially from young people who do not want unfurnished accommodation. Surely, the right policy is not only to make provision for improvement grants but to encourage development by housing associations, local authorities and private landlords as well. In order to maintain the largest stock of housing for this purpose we should try to persuade people to turn houses from owner-occupation to multi-occupation with furnished tenancies.
I am coming to that. I certainly wish to see the stock of rented accommodation increased, but the measures to achieve that must depend primarily on giving incentives to owner-occupiers to sub-let. I accept that, and I am sure that the forthcoming legislation to extend security of tenure to furnished tenants will contain exceptions to encourage owner-occupiers to sub-let.
I want the Bill to go further than merely to give security of tenure and to give fiscal or financial incentives to owner-occupiers to do just that, because it is important that we tap a new market here. Having been one of those who have advocated for many years the extension of security of tenure to tenants of furnished accommodation-I know from experience in North Kensington how the lack of such security has been one of the greatest causes of housing stress—I know that this is a source, albeit an unsatisfactory source, of accommodation for the mobile, and it must be replaced. At present, it is being filled by families who have nowhere else to go.
I accept that it will be necessary for us to take steps to extend the availability of housing in this sector. It is necessary also for local authorities and housing associations to provide for people in that category. In the long term it cannot be satisfactory for any one individual to own and control another person's home.
I return to my comments on the Bill. There is provision for grant to be repaid in certain circumstances, but I remind the House that, even if a grant is repaid, the expenditure of an improvement grant inevitably increases the value of a property by more than the amount of the grant actually spent. Thus, a landlord will be receiving, albeit at compound interest at the appropriate rate, a loan which has greatly improved the value of his property. He will have the money available and not have to pay interest on it till such time as he realises his investment. I am sure that many people who are able to obtain interest-free capital loans and not have to repay them till they come to sell the property will be only too glad to accept the conditions imposed at the time the grant is offered but to flout the conditions as soon as the property is ready for sale.
The only effective way to maintain the stock of rented accommodation is to help local authorities and housing associations to buy it. The essential ingredients for increasing the stock are these. First, we must bring housing accommodation which is at present let into local authority or housing association ownership. Second, we should give owner-occupiers the incentive to sub-let, as I said in response to the hon. and learned Member for Thanet, West (Mr. Rees-Davies). Third, we should increase the local authority house building programme. The latter point is outside the scope of the Bill, and so, perhaps, is the question of incentives to owner-occupiers, but the business of bringing tenanted property into local authority ownership is very much a function of the Bill, and I do not think that it does it.
There are three major difficulties in the way of bringing such property into local authority ownership. The first is the slowness of the present compulsory purchase procedure. Second, there is the lack of public health, district valuer and legal staff. Third, there is the potentially inflationary effect of compensation. It is here that the concept of housing action areas is extremely useful.
I welcome the extension of the grounds for compulsory purchase so far as it goes, but the problem lies in the slowness with which these powers are exercised. I see no justification for allowing an absentee owner who sees his property only as an investment to challenge the principle of a compulsory purchase order. At the very least, in housing action areas and control areas there should be a speedier compulsory purchase order procedure, limiting the right of the non-occupying owner to challenge a CPO. He should, of course, be entitled to argue the amount of compensation, but he should not have a right to argue that the property should not be taken over. That is an issue which the local authority, subject to the right of the Secretary of State to intervene, should decide, since the owner in these circumstances regards his property solely as an investment. The tenants have a direct interest in it, too. I do not accept that the owner has any legitimate right to intervene in the question whether the property is to be bought, although, as I say, he should be entitled to argue that he should receive higher compensation.
The second difficulty is staff. Why cannot there be a differential pay structure so that if a local authority in a housing action area can show that the level of activity in relation to its total housing stock has reached a certain point it is then entitled to pay more for public health inspectors and for other essential staff to meet its target? I should not like to go into precise terms in that regard, but I believe that this is a function in which an extension of the power of local authorities to pay at differential rates would be valuable.
Finally, I come to the point regarding compensation raised by my hon. Friend the Member for Salford, East (Mr. Allaun) in his intervention. I quite understand the fear of the inflationary effect of buying for cash on a large scale. Even the £50 million referred to in Circular 70/74, at £5,000 a house, would buy only 10,000 units, and that would be a totally inadequate step towards the acquisition of privately rented housing. If we pay cash for municipalisation there will be an inflationary effect, because some of that money will spill over into current spending on goods and services, and, since it involves an increase of public expenditure, it will involve a dispute with the Treasury. I believe, however, that the effects of such purchase will be very much less than is feared. In this connection, I commend to my right hon. Friend the letter from the chairman of the Camden Housing Committee which I sent to the Department, in which he argues that the effect would be minimal.
Nevertheless, I am convinced that in the long term we shall be able to carry out the programme which the Government and I wish to see only by introducing some form of Government housing security—irredeemable stock, saleable on the Stock Exchange—which would carry an income equivalent to the fair rent of the property acquired. Thus there would be the exchange of one income-producing asset for another, which would make the acquisition of houses through the municipalisation programme economically neutral. This proposal is outlined in much more detail in the Society of Labour Lawyers' pamphlet "The End of the Private Landlord", which I again commend to my right hon. Friend. That proposal would enable us to tackle the housing programme on a far greater and more effective scale than would the Bill as it stands.
Notwithstanding my criticisms, I welcome the Bill in the light of the assurances of the proposed amendments outlined by my right hon. Friend, and I trust that the Bill will gain support from both sides of the House.
5.30 p.m.
As this is my first speech in the House of Commons and, after having gained membership at the third attempt, let me start by expressing my unashamed delight at being here at all. Stevenson's motto—
So, too, no doubt, will my predecessor at Romford, Dick Leonard. We were opponents in 1970 but I have never heard anyone speak ill of him. It may be that I have not been sufficiently zealous in my inquiries, but I do not think so. It was his misfortune not to find another seat in time for the last election. His vigorous, pro-European sixties views were perhaps an impediment in the modern Labour Party of the seventies, but he is a lively, likeable man and his consistency and courage have earned him much respect. He has that special quality which men admire in other men—an attractive wife. I am sure that it will not be long before his many friends will welcome him back to the House.
As the result of the redistribution at Romford, my predecessor lost the vast Greater London Council housing estate at Harold Hill, with its 23,000 GLC tenants, not every one of whom voted for me in 1970. Hon. Members will understand with what mixed feelings I watched them go into the constituency next door of my hon. Friend the Member for Upminster (Mr. Loveridge). The new constituency of Romford now has a Conservative Member of Parliament for the first time for nearly 20 years. Hon. Members may remember the last one, Colonel John Lockwood, a former president of the RSPCA. He is still, happily, with us and given to sharing his chaise longue with a gigantic Irish wolfhound.
The revised constituency of Romford is based on the traditional market town. Romford has had a market since 1247. As recently as 16 years ago cattle were still sold there. Side by side with the old market has developed a massive new shopping precinct called The Liberty. It takes its name from the Royal Liberty of Havering-atte-Bower, which in turn gives its name to the London Borough of Havering of which Romford is part. It was at his palace at Havering-atte-Bower that Edward the Confessor's devotions were interrupted by nightingales—a disagreeable experience only possible in the relative tranquillity of that part of my constituency.
Nowadays Romford is a residential retreat for many thousands of commuters by rail to London each day for their work, and, to a lesser extent, for those who are engaged in industry and commerce more locally. This makes housing a major activity in the constituency and an appropriate choice for my first speech, certainly in the context of Greater London.
Until I heard the Secretary of State's more pungent comments this afternoon, I thought that the Bill might be a suitable occasion for a non-controversial speech. Its principles are largely accepted—certainly those put forward by the Conservative Government—and I expected that there might be a degree of conviviality about the occasion which would make it a suitable time for my first venture. But I realise that some new proposals are being introduced by the Government, and I shall have to tread carefully to avoid those prickles.
I start with the unfashionable proposition, which I would have thought provocative had not the Secretary of State himself made it as a late conversion towards the end of his speech, that the vast majority of Londoners are incomparably better housed than ever before in the perspective of a generation. That is the only convincing explanation of the otherwise apparent paradox that at a time when hundreds of thousands of new houses have been built in London since the war, and the population has steadily diminished, the housing waiting lists grow longer and longer.
Fifty-one per cent. of the people of this country now own their own homes. Owner-occupiers have a controlling interest in the nation's housing. My constituency is even more fortunate. There, the percentage of home owners is nearly 70 per cent., the remaining 30 per cent. being accommodated in public and private rented accommodation in the proportion of roughly two-thirds to one-third. In case hon. Members should think that I am a little out of touch with housing realities, particularly with areas of housing stress, I should say that I have previousely been a candidate for the constituency of Hammersmith, North which has some of the worst areas of housing stress in London.
Before one can successfully tackle the housing problem one must define the housing need. As a member of a local authority for many years, I believe that there is a need to redefine the housing list qualifications of London boroughs. It is manifest nonsense that anyone, of any status and any background, can apply for a council house. The real need is not defined in that way. There is also a need to recategorise applicants in need. At present the points system and the whole approach to the provision of public housing are heavily weighted in favour of families with children and against single persons, who have a particular need and none the less urgent.
There is a definite housing shortage because on the whole since the war we have been altogether too ambitious in our approach. We have concentrated too much on building new houses and have at the same time generally set ourselves unrealistically high housing standards. New houses are only one indicator of housing progress. If too much emphasis is put on new buildings—as it has been in recent years—successive Governments are disappointed and the public are disillusioned.
To their credit the previous Conservative Government commenced a programme of renewal and regeneration of older housing stock as a deliberate change of direction in housing policy. There was a massive increase in grants for improvements—368,000 in 1972 and as many again in the following year. Equally commendably, by the introduction of this Bill, the present Government appear to be continuing that policy, which must be welcomed because it has at least three major advantages.
First, it is an effective means of providing accommodation by preventing it lapsing into decay and dereliction. Secondly, it avoids the upheaval of redevelopment and the need for decanting, which means that at any given time there is housing land vacant which cannot be used to provide homes because the people have to be moved. Thirdly, it retains the character which is in danger of being torn out of the heart of our cities and towns on a large scale by what the Secretary of State has called indiscriminate clearance. For all those reasons I welcome the emphasis on restoring our present housing stock.
Indeed, there is in much of the debate an absence of dogma, which is a good thing, because dogma builds too few houses. Extremes breed extremes. Under one Government the public sector expands at the expense of the private sector and under another Government the private sector is expanded to the detriment of the public sector. What is needed is not this tendentious prejudiced approach but the harnessing of all the agencies available for housing. That is why I am encouraged by the provision in the Bill for the Housing Corporation to have increased power, for housing associations to develop and for local authorities to continue to play an increasing and different part. I make the plea that if local authorities are given increased power they should consider their compulsory purchase orders with considerable circumspection and think carefully before going into run-down areas and embarking on large-scale development.
I will cite an example in my constituency, a small area with 105 dwellings. The names of the four roads that bound the site—Victoria Road, Albert Road, Carlyle Road and Shaftesbury Road—make it unnecessary to give the age of the properties. They were obviously erected in the nineteenth-century Victorian heyday. There is life still left in these properties. The present occupiers are enthusiastic about modernising them, and many grants have been allowed, both standard and discretionary. The proposal is to clear the whole site and redevelop it with a relatively modest housing gain. My plea is that local authorities should allow for the dispossessed owner-occupier in such areas.
What is to be done for the man at the end of his working life who has just finished paying off his mortgage on a small artisan dwelling, and may even have paid off an improvement grant? When he has achieved a home of his own in real terms for the first time, what is to be done when the council tells him, "We have to clear the whole area and put new housing on it"? Opportunity should be given to people in this category to buy one of the new houses at a reasonable price. It is unrealistic to expect a man in that situation to have to go to the open market and find a new modern house for himself. At present market values he cannot possibly aspire to a new house. The net result, in human individual terms, is that that man—after years of struggle to achieve independence—has no option but to become a council tenant. It is a bitter moment for him.
I believe that the other area in which we have erred in emphasis relates to the high standards we have set. I believe that we should seriously consider whether we should reduce our standards, and I refer particularly to London. One major factor in the London housing situation is that land in London is a finite resource and we cannot hope to achieve the same progress in building new homes at the standards we have been attempting.
As a boy I used to read books by Ripley called "Believe it or not", collections of astonishing facts and startling statistics. The only astonishing fact that has lingered in my memory is an illustration of the world's population, to the effect that all the world's people could be stood on the Isle of Wight. Over the years I have pondered the plausibility of that statement and considered whether the Isle of Wight might not sink under the weight of such a burden. I have come to the conclusion that if it were possible at all it could be achieved only by totally unacceptable standards of density, with people standing shoulder to shoulder and back to back in great discomfort.
Likewise I believe that it is no doubt true, although I have not made the calculation, that it is possible to house every single family in Greater London in an appropriate three-bedroomed detached house within the confines of the boundaries of Greater London—but at what cost, at what loss to our open space, our green belt countryside and the pleasant residential streets that now exist? London must be able to breathe. We must face the fact that once the once-for-all Thamesside dockland and British Rail goods sites have gone, there will not be any further large parcels of land to enable more advances to be made in our housing provision.
We all know that one alternative lies in high-rise buildings and tower blocks, but virtually everybody agrees that they are a failure. They have succeeded in Manhattan and Sao Paulo, but Britons have not taken to a vertical life-style, an "Otis elevator society" where life literally has its ups and downs. High-rise buildings, particularly those used to accommodate families with children, create concentrations of social problems. I have one such tower block in my constituency, Highfield Towers, in Collier Row, which brings a disproportionate number of complaints and grievances to my postbag.
I suggest that we have the further alternative of reducing our standards, and I urge the Secretary of State to consider this course. I wish to cite Parker Morris in local authority housing as an example, since it has caused problems in cost yardsticks and delays in architectural plans and designs which have to be devised not to house people in reasonable standards but to come within certain criteria laid down by the Department. This has left eyesores in London where unfaced concrete has been left standing in bare landscapes because there have not been sufficient funds to allow external finishes to be completed and gardens have had to be sacrificed. Yet space heating by gas and electricity, still a luxury to most, is compulsory—and with the increasing prices being charged by the nationalised industries this is a burden to many tenants who either have to pay or keep the system shut off.
We must place a limitation on housing standards and the Bill, by its emphasis on older housing, encourages attempts to do this. Otherwise our housing problem will remain insoluble, like the painting of the Forth Bridge. We shall never succeed in housing all the people—this applies not only to London but to the country as a whole—who need housing. As the situation stands, we are caught up in a vicious spiral of social aspirations, in which hundreds of thousands live cosseted. with central heating and colour television sets, but where thousands of others are either homeless or live in deplorable, damp, cramped, insanitary conditions that would disgrace a Dickensian landlord.
To those who object to lower standards and who argue that we shall be building the slums of the future, I respond by pointing to those same Victorian artisan dwellings I mentioned earlier. All is relative. Today's slum is tomorrow's bijou residence. One has only to remember the prefabs which after the war were created for a life of 10 years and which still, 25 years later, provided adequate accommodation for many Londoners. For those in genuine need, much simpler smaller accommodation is necessary. They need the basic elements of shelter and other refinements should be made secondary. We must halt the widening gulf between the increasingly better-housed majority and the increasingly worse-housed or even homeless minority, particularly in our major cities, and especially in London. The more realistic, moderate and constructive approach represented by the Bill may prove it to be a major advance in our national housing policy.
5.47 p.m.
I welcome this opportunity to congratulate the hon. Member for Rom-ford (Mr. Neubert) on his maiden speech—and all the more because of the practical advice which it contained and the humour with which he larded it. We on the Labour benches welcome his interesting explanation of how he came to the House and the changes which have led to the first Conservative Member of Rom-ford. The hon. Gentleman's predecessor tended to let us know about the statistical movements in political thought and their implications on the House of Commons. Therefore, it was very proper indeed that the hon. Gentleman should have raised those matters.
The hon. Gentleman made an interesting and valuable speech, but I would take up his point about standards and ask him to think again. Some of us have memories of what happened in the early 1950s as a result of attempting to achieve more houses by adopting lower standards. We then had to deal with the consequences of that move in terms of repairs and also the vandalism which that disastrous experiment appeared to encourage. However, this point no doubt can be discussed on another occasion, when I am sure the hon. Gentleman will have an opportunity of speaking.
I welcome the Bill, warts and all. I do not pretend that it is everything that some of us would have liked to see, but I accept the fact that there is an urgent need to get ahead with this work. Therefore, it is right to bring in the Bill in its present state and to hope that improvements may be made in the legislation as we go along.
There are clearly some anxieties on the part of local authorities about their relationship with the Housing Corporation and the housing associations in the future. Those are matters with which we shall be able to deal in Committee. I know that anxieties have been expressed, but some of them are perhaps exaggerated.
I agree with my right hon. Friend the Secretary of State for the Environment that there is a real need for a place for the housing association in co-operation with the local authority, but it is vital that there should be an understanding between them. I am sure that it is absolutely essential that that should happen; there are a number of matters which we shall need to clear up later.
I am also concerned about the way in which we develop this further approach to improvements to older property. I take some kind of proprietary interest in the subject, having myself introduced the first Bill in which this kind of procedure and in which Government grants were provided for in the 1949 Act. Since then, we have seen the steady development of a greater and greater use of this kind of procedure, and it has been very welcome. But when the hon. Member for Romford suggests that by the use of procedures of this kind and by giving greater attention to the improvement and restoration of buildings we avoid some of the upset and disturbance which can be caused by the wholesale redevelopment of an area, I ask him to realise that in some cases there is very serious upset and disturbance in carrying out any kind of at all extensive restoration and improvement schemes. Many very real personal tragedies can be involved unless the scheme is carried out in a careful and well-organised manner.
I am afraid that one unhappy result of the doubtless laudable intention of the previous administration to speed up the amount of improvement work by, for example, increasing the grants available in development areas was that a great deal of work was taken in hand which was not well organised. The skilled labour proved not to be available. A lot of shoddy, unsatisfactory work was done. A very great deal of discomfort, to put it mildly, and disturbance was undoubtedly caused. On top of that, there was pressure on prices which sent some prices sky high. All kinds of jobbing firms came into the operation which had done very little of it before to take advantage of the opportunities of a fairly considerable profit, with great hardship for some families and even disaster for many of them. I have case loads of complaints about the way in which firms took up a certain amount of work only to leave it to take up other work which offered a better price. A great deal of work is still uncompleted. Some firms have gone out of business altogether. Many have gone bankrupt because of their inefficiency in organisation.
I say that not to attack the need for improvement and development work but to insist that the work be put on to a more efficient basis. Both at local authority level and at other levels we have to look at this as a continuing job requiring the full-time attention of a considerable qualified staff if we are to get the return from it that we want, expect and should have. I issue that caveat right from the start, and to some extent I share the views of my hon. Friend the Member for Mitcham and Morden (Mr. Douglas-Mann) who warned the House about the difficulties which will arise with the different scales of grant which are to be made available with perhaps no very obvious logic to support them.
In this connection, I wonder whether my hon. Friend the Under-Secretary will consider how those living in the areas concerned can be brought into full participation, if that is not too tired a word, about the way in which schemes are to be developed. I have had experience of a number of cases where the tenants themselves seem to have been ridden over in a roughshod manner. There has been very little consultation with them. In one case the owners seemed to find it astonishing that I should call upon them to discuss their plans beforehand with the tenants on a considerable estate.
I am sure that this kind of complaint could also be levelled at local authorities which are carrying out some kind of rehabilitation work.
I agree that it can be, but rather less so in my experience. The local authorities work out ongoing programmes over a long period with careful arrangements for decanting people, moving them out of their accommodation and ensuring their ability to go back to it. I do not say that there has been no complaint, but there has been less complaint about schemes and the type of labour used on them than about the consequences of other schemes which I have had to face in my constituency.
I would like to find a way of ensuring that the people living in an area are brought into talks earlier to have some influence on the nature of the scheme and the way in which it operates. This is applicable whether it is one of the housing action areas which are proposed or in a wider development area. I wonder whether the Secretary of State could consider the value in such situations of neighbourhood councils at local level able to offer advice and suggestions about how a scheme could operate successfully. There is provision in the Bill for these housing action areas to be based upon reports presented to local authorities. It might be that some of these reports could come from such bodies as local neighbourhood councils. I know that the Minister was interested in proposals of this kind. I hope that there will be some opportunity to develop the idea in Committee.
I welcome the decision which my right hon. Friend has repeated again today to extend the period for the completion of the existing 75 per cent. grant schemes. This was clearly needed, although, as my right hon. Friend must be aware, he will not escape a great deal of criticism by doing so. Inevitably, whatever date is fixed as the approval date, there will be a great many cases falling outside it. I hope that we shall be able to pick up some of those which fall outside in the longer-term schemes which are to be brought into operation under the Bill. This is one of the reasons why I want to see the legislation brought into existence and given its full effect as rapidly as possible.
I repeat that I welcome the provisions of the Bill. I hope to see some amendments made. I ask the Government to be very careful to ensure that the improvement schemes which are to be carried out under these new arrangements have much more careful supervision and control than schemes which have been carried out recently. It is for that reason that I do not altogether share the enthusiasm of the right hon. Member for Finchley (Mrs. Thatcher), who quoted the total figures of the number of schemes either approved or carried through when some of us know that included in that total there is some work about which we cannot be too happy.
6.0 p.m.
I am delighted to add my congratulations to those of the hon. Member for South Shields (Mr. Blenkinsop) to the hon. Member for Romford (Mr. Neubert) on his maiden speech. Since I made my maiden speech only a few weeks ago, I know only too well the feeling, after a long journey, as he put it, of suddenly arriving and, as it were, being awakened by the train announcement at Paddington.
I must express one small misgiving about the hon. Gentleman's speech. Such was his eloquence that at one stage I feared he might propose that the world population should move to the Isle of Wight. I feel sure that my hon. Friend the Member for the Isle of Wight (Mr. Ross) would disapprove of such a proposal.
I have a special interest in housing since I have advised the Royal Institute of British Architects for some years on housing policy. Indeed, I still do. Therefore, I declare my interest.
I confess to having similar misgivings to those expressed on Second Reading of the previous Bill by the then spokesman for the Opposition, now the Secretary of State for the Environment. The right hon. Gentleman, introducing the Bill today, referred to his reaction to the previous legislation as a feeling of let-down and disappointment and that what should have been a real attack on housing problems was merely a palliative which was passed off as a panacea. To some extent that expression of feeling applies to this Bill. However, there are differences.
The hon. Gentleman is being unfair to my right hon. Friend. In his speech my right hon. Friend made it clear that he was greatly aware of the deficiencies in the Bill and indicated that shortage of time was responsible for them.
I accept that. I was about to move on to attempt to deal with some of the wider considerations for which rightly and justifiably the Secretary of State took some credit since taking office.
The housing crisis challenge is not much less than it was on 5th February. I am sure that the Secretary of State would acknowledge that there is a great deal still to do. In that respect the Bill is but a modest step, and it is right that we should all recognise that.
We on the Liberal bench took very much the same view as the then spokesman for the Opposition on the previous Bill—namely, that the housing challenge was not being met by that legislation. For that reason, we shared the right hon. Gentleman's concern. But, as I said, we recognise and give credit for the fact that other Government action in certain respects has given some hope.
The Secretary of State referred to the freezing of rents. I accept his claim for some credit on that score, but this is a hollow joke to council tenants in areas like mine who are now affected by a 100 per cent. rise in the rate part of their rent. In many instances it is the water and sewerage rates that are increasing so much and they are unable to apply for rebate on that part of their rent. Therefore, the people to whom the Secretary of State referred as being in particular need in housing are being sharply burdened with extra costs.
Similarly, I give credit to the Secretary of State for his action regarding Circular 111/74. However, there is one misgiving which I should mention. In contrast to the hon. Member for Rom-ford, who seemed to be asking for a levelling down of standards, I find it depressing that local authorities are being encouraged to purchase from private builders houses that they would not con- sider up to standard for their own building. That seems to me an extraordinary situation. I hope that it will not be allowed, except in areas of considerable housing stress.
We are in danger of always cutting our standards a bit more in the hope of building a few more houses. The only result will be that in 20, 30 or 40 years, we shall have to spend more, at a greatly inflated cost, to bring those houses up to present-day standards. This is in no sense a wise economic policy.
I noted in the circular that the Secretary of State referred to the cost yardstick. I hope that he will undertake a searching review of the whole cost yardstick system very soon.
I should like to refer to the excellent report by Shelter, "Housing—Plan for Action ", which many of us, I am sure, have received in recent weeks. Its recommendations have to a considerable extent been accepted by the Government in various ways. But the report states that there must be a major increase in the amount of accommodation for renting from public authorities. I suppose that many hon. Members opposite would agree with that statement. It also states that there is a need for
Still referring to other action taken by the Secretary of State, which should be the backcloth to our discussion today, I come to the question of mortgages. This afternoon the Secretary of State took some credit for having averted an even more difficult situation regarding mortgages. But it is fair to point out that many hon. Members and members of the public are still a little unsure about what the right hon. Gentleman has done. I have put down a Question for written answer today by the Secretary of State asking whether he will be more specific on what use he has made of public money—our money—in bolstering up the building societies at this time If it is simply that the Secretary of State has subsidised the building societies' reserves, it should be a matter of concern. If, on the other hand, he has persuaded them to be more adventurous in lending, particularly to first-time house purchasers, we would look at it in a different way.
The burden of my remarks is to emphasise that I think that there is still a critical housing situation in this country and that it has not greatly changed since 5th February when the Secretary of State, as he now is, was so critical of this mouse of a Bill. Nevertheless, I welcome the Bill and, despite the size of the problem, think that it is a small step in the right direction.
I intervened briefly in the debate on the order to extend the borrowing powers of the Housing Corporation to suggest that the corporation had a wider role to play. I am pleased to see in Part I that this wider role for the corporation is considered to be necessary.
I do not have the same misgivings as the right hon. Member for Finchley (Mrs. Thatcher) about Clause 6. Indeed, I was surprised to hear her misgivings since it is the same clause as was in the previous Bill brought forward by her right hon. and learned Friend the Member for Hex-ham (Mr. Rippon). Perhaps that is why he is not present today. As I said, I do not have those misgivings.
Indeed, when we come to the other provisions for extending the role of the Housing Corporation, I should like the Under-Secretary, perhaps in reply, to face the question: why should not the corporation also lend money to housing authorities? I know that there are some misgivings amongst hon. Members that the corporation may be set up in conflict or competition with housing authorities. However, I think that it could have a role in supporting adventurous housing authorities which want to introduce new policies, within the overall housing policy in, for example, mortgage loan arrangements. If we cannot get the building societies to be adventurous in starting new forms of mortgages-low-start, equity-linked, and so on-there may come a time when a housing authority is prepared to do it. Therefore, why should not the Housing Corporation, which has the necessary financial expertise, be the vehicle by which housing authorities raise the money for that purpose? It seems to me that, with a small amendment to Clause 9, that could be achieved.
As was said on the Second Reading of the previous Bill we welcome the registration provisions, but I wonder whether the Secretary of State might consider the possibility of specifically encouraging associations and societies to undertake a greater degree of tenant participation in management as part of these general provisions. I was pleased to hear what the right hon. Gentleman said about tenant participation, but there may need to be a little carrot, or perhaps even a little stick, to get this going.
I give Part IV of the Bill a warm welcome but I wonder whether the misgivings of some people outside the House have been fully considered about the extent to which the previous Bill did not permit local authorities to be more interventionist. I refer in particular to a leading article in The Guardian which made these comments:
I was interested in the right hon. Gentleman's reference to widening the concept of housing action areas into urban action areas. If that means a greater co-ordination of public effort in all services dealing with the problems of the inner cities, I am sure that we shall welcome it.
I am sorry that the hon. Member for South Shields (Mr. Blenkinsop) is not here. I hope that the Secretary of State will see that there could be a role for neighbourhood councils. When I am in London, I am fortunate enough to live in a part of the Borough of Lambeth which has an excellent neighbourhood council, and both in analysing the problems of the centre of our large cities and in putting forward some solutions to those local authorities who have power to deal with them, neighbourhood councils have an excellent rôle to play.
Part VI of the Bill deals with improvement grants. We welcome the restriction to the first home. I represent a constituency with many second homes, and this reform is long overdue. I have one slight misgiving about the desire to impose conditions on improvement grants throughout the country. I see the need for conditions about continuing tenancy or owner-occupation, but my concern is more with physical conditions.
All too often, the inflexible imposition of conditions for giving an improvement grant on an older property, or a property of architectural or historical interest, means that there is a conflict of interest. Either one improves it and risks difficulties that might be caused. for example, by raising the height of a ceiling, or else it remains potentially a slum property.
As one who represents a constituency with intermediate status at one end and development status at the other, I am grateful to the Secretary of State for allowing us to continue a little longer on the 75 per cent. scheme, but I wonder whether it has been represented to him that many local authorities became so snowed under with applications for improvement grants towards the latter end of last year that they were caught by the bell while the applications were in the pending tray. This is particularly unfortunate, and perhaps when the Minister replies to the debate he will say whether there is any way in which that difficulty could be met.
I have scurried through the Bill. I should not want it to be thought that I am so critical that it would not be worth giving the Bill a Second Reading. We want this measure to be read a Second time. All I am trying to do is to indicate, as the present Secretary of State did on 5th February, that this is but a small step and that a great many much larger steps must be taken in the coming months if we are to deal with one of the greatest problems today, which is the housing crisis.
6.12 p.m.
I am grateful for the opportunity to address the House as a new Member for a new constituency. It is not inappropriate that I should follow the speech of the hon. Member for Bodmin (Mr. Tyler), who on one occasion sought my vote in Totnes. I cannot claim that I was able to give it to him.
I have in addition, while working in the Conservative Research Department for the last year, been following the activities of the Liberal Party, and its housing policies in particular. I have to admit that found that the Liberals had some new and constructive ideas in housing but, as has been said, the new ideas were not particularly constructive and the constructive ideas were not new. I listened closely to the hon. Gentleman this afternoon and I cannot claim to have noticed a big change in Liberal policy since those days.
I am one of the last of the maidens. I trust that that does not make me a foolish virgin. It so happens that I have the privilege of following in the footsteps of another modest man. He did not address the House until after he had been here for twice as long as I have been, and I am encouraged to note that his career was not unduly blighted as a result.
The Member to whom I am referring entered Parliament for Bexley in 1950 with a majority of only 133, greatly helped by the presence of a Communist candidate, hence his lively interest in the activities of that party. He, alack, has gone to where the grass is bluer and the opposition a little greener, taking with him one of the best of the eight wards of the old constituency of Bexley. He has left behind an outstanding local reputation as well as innumerable friends. My Labour opponent said of him that he was extremely assiduous, hard-working, very efficient and a very effective constituency Member, and I should like to take this opportunity to thank John Cartwright, who is well known to many Labour Members, for that generous tribute that was issued during the heat of the election campaign.
My constituency is formed of the two towns of Welling and Bexleyheath. We take our politics seriously in that part of the world. We have to, because we live in a marginal area. Indeed, it could be said that we hang on the political pendulum. That is not as uncomfortable as it sounds, at least not since last Thursday, because on that occasion the London borough of Bexley lived up to its motto of "Boldly and rightly". Incidentally, I have heard it said that due to the population explosion in the borough we should be wise to change the borough's motto to "Boldly and nightly".
It is a matter of great regret to me that I was unable to follow the leader of my party into the Lobby in my first Division in the House. On that occasion I found it necessary to trespass against my duty and go over to the enemy, because the Government's rate support grant proposals brought real benefit to my constituents, who have the highest rates in London under a Labour council. That is perhaps why that Labour council is no more.
We are a commuter community. I have discovered that the man in Whitehall tends to live in Bexley, so I shall have to modify my criticisms of him accordingly. I have also noticed that it is the happy lot of half the Metropolitan Police force to live in the area. We depend on the railway line-it is our lifeline-and I hope that by the time I leave Westminster an underground line will go our way as well. We badly need it. But I will leave the problems of commuters in general and ASLEF in particular to a more appropriate occasion.
We also have a number of housing problems. We are not a rich community, and the high mortgage rate is a real problem. The Government must ensure that mortgage funds go first to the first-time buyer. The building societies in turn must ensure that they have a more stable flow of funds from City institutions. I welcome the relief given by the Government's £500 million loan but I question its economic sense and whether it is right for the taxpayers' money to be used in that way to that extent. The loan is certainly against the Budget strategy.
The Bill touches on the housing policies of the Greater London Council. For two years I worked in County Hall as political secretary to Sir Desmond Plummer. Londoners owe more than they know to that enterprising and dynamic man, who for six years waged unceasing war with Whitehall, irrespective of the party flag flying over the top, to try to obtain a better deal for the London which had elected him. I believe that he had considerable success.
I should like to see clearer lines of responsibility between the GLC and the outer London boroughs. I am not sure whether I entirely agree with all my hon. Friends on that point. I believe that the GLC should be the strategic planning authority, responsible for zoning densities, but I want its stock of council houses reduced to perhaps 100,000, or half its present total. The boroughs must have primary responsibility, as they do now, for building and they must continue to be responsible for housing management.
I believe that the outer London boroughs, together with free enterprise builders, have an obvious first call on the few remaining housing sites in outer London. The character of outer London must be preserved. It would be foolish if, over the next decade, we were to transfer the problems of inner London to outer London. There is a real danger that that might take place.
I welcome the support that the Bill gives to housing associations, societies and co-operatives, which have a real part to play. I hope that the Government will feel able to give even more support in due course. The cost per unit is less, they bring extra hands to work—who can say that those extra hands are not required?—and they preserve existing buildings which are structurally sound, thereby saving so many of London's historic squares from the ravages of the bulldozer.
I hope that the Government will do more for the many single people living in London. By 1981 about 20 per cent. of all Londoners will be living alone —a very high proportion. Much more needs to be done also to help students with their housing problems. One good idea is that they should be allocated the top flats in the high-rise blocks, at least until we can obliterate those grey monuments to the limited knowledge of experts and the foolishness of the 'fifties.
I regret that the Bill does not do more to encourage the sale of council houses. I am proud that, under my party, the GLC sold 15,000 council houses. Maximum encouragement should be given to home ownership. We should give people a pride in their own homes, security in their lives and a stake in their country's future. That is how we can advance the cause of a free and fair society on the basis of a property-owning democracy.
If we are honest, we will admit that neither of the two great parties can speak with pride of its total housing achievements. Those of us who have seen at first hand the housing conditions of our fellow citizens, in North Kensington and Tower Hamlets for example, know that in recent years London's housing has become a national scandal. Far too many people in the very heart of this metropolis are living in appalling conditions and we all know about it.
The wide disparity that we see is unhealthy for a democracy. I suspect that that view is broadly shared. It is time to bring to bear the total resources of our society to house the last and least in our society. I am thinking in particular of those 3,300 London families to whom the cry "Who goes home?" tonight will have a special meaning, because they have no home. This is the inherited wrong that my generation must help to put right with all the ability and zeal at its command.
I am grateful for having been called tonight. I have followed in the footsteps of a patriot whose patriotism has been the tranquil steady dedication of a lifetime, a statesman who has played a decisive part in the turbulent and proud political history of these islands. I have felt sometimes like the small dinghy towed behind "Morning Cloud". I knew where the power came from, I knew also that a sudden turn of the tiller, a jib or whatever is the nautical equivalent of a U-turn, would probably swamp me first.
I am grateful for having been allowed to speak on a subject of great interest to me. I hope that I shall be able to play a small part over the years in ameliorating the problems that I have mentioned. I am grateful to hon. Members for their courtesy and patience on this occasion.
6.28 p.m.
I am pleased to be able to follow the hon. Member for Bexleyheath (Mr. Townsend). When I first checked the name of his constituency, I thought that I was to follow the Leader of the Opposition. That is partly because my glasses, although useful for reading, are disastrous when it comes to identifying hon. Members across the Chamber. When I heard the hon. Member's confident approach, I was fairly sure that I was right, but as his humour made itself obvious I began to doubt and took off my glasses immediately. But when I heard his tactful praise of his leader, I realised that I was at fault and that he was sowing seed that he hopes to reap in future.
The hon. Member spoke with considerable knowledge of his constituency. I thank him for his support of the Government's rate support grant and I trust that he will support the Government many times in the coming months. All of us will agree that he spoke with complete sincerity—although I did not agree with everything he said—honesty and knowledge of this subject. We look forward to hearing again from the hon. Gentleman, although I assure him that on future occasions he will probably not have quite as comfortable a ride as he has had this evening.
Not only do I welcome the Bill but I also welcome the way in which it was introduced by my right hon. Friend the Secretary of State. I particularly welcome three points in his speech, to which I shall refer. First, he said that he would seek in Committee to amend the Bill. It is wonderful to have the Minister in charge of an important Bill such as this saying at the outset that he is prepared to accept amendments. As a back bencher, a rôle I have occupied on both sides of the House, I have rarely found Ministers eager to accept amendments.
My right hon. Friend also emphasised his view that the stress areas must come first. He is not at present in the Chamber. I understand the reason for his absence. I trust that he will read my speech and become more and more convinced that my constituency is a stress area and should come first.
I was particularly interested in my right hon. Friends remarks regarding housing action areas. He indicated that we shall have further changes during the passage of the Bill. For my sake and for the comfort of certain members of the Government, I hope we shall see such changes.
If during my speech I tend to concentrate on the warts, it is not because I like warts but because the good things in the Bill, like the good things in life, speak for themselves, and on these occasions we must speak for the deficiencies.
The right hon. Member for Finchley (Mrs. Thatcher) was in some doubt whether the Bill applies to Scotland. I understand that the answer in the end was "Yes, it does, and no, it does not." But no one can doubt that the Bill applies to England and Wales. I hope that the message on the bush telegraph which has come my way indicates the truth—namely, that my hon. Friend the Under-Secretary of State for Wales will intervene in the debate. I do not normally care for three Government speeches during one debate, but I should like to hear from my hon. Friend on this important matter. We know how forceful a contribution he has made to many of our debates on housing problems affecting the Principality.
It is very difficult to tell the difference between the present Bill and the Bill we debated on 5th February. On that date considerable emphasis was placed on the deadline of 23rd June for the 75 per cent. improvement grants. It would be churlish of many of us if we did not welcome the extension, limited as it is. I understand the financial reasons for the limitation. Despite the extension, however, by being unable to extend the limit even further we are continuing with a great injustice to those whose grants were approved after September, particularly those who are actively proceeding with the work of improvement. There are injustices here. There is the fact that the individual applicant whose work is now proceeding loses 25 per cent. of the grant. For many people that involves a considerable sum which cannot easily be found from any other source. I trust that my hon. Friend the Under-Secretary of State for Wales will be able to find a means of advising such people where they can find this extra 25 per cent.
The second injustice in this matter is that it distinguishes between people—between those who have been lucky enough to get a builder early enough to finish the job and those who have been left behind.
There is a third important aspect. I am not normally given to making great speeches in praise of builders, but some builders are being threatened by the non-extension of the 75 per cent. grant. If the applicant cannot find the extra 25 per cent., who is to pay the builder? We may well find that, through no fault of theirs, applicants and builders can lose considerable sums. The delays in many cases which have come to light recently are delays which were brought about by the shortage of building materials, which was made worse by the three-day working week. It is a strange situation in which we now find ourselves in being unable to help the applicants who are suffering largely the consequences of the three-day working week which was unnecessarily forced on the country by the Conservative Government.
In considering the Bill it is understandable that we should consider its effect on the whole country—at least on England and Wales. We need a closer and more detailed examination. We need to look not only at the whole but at the parts which make up the whole and to examine how the Bill affects different parts of the United Kingdom. The housing problems and needs of the parts are not necessarily identical to the general need. That was the major criticism of the Bill introduced by the previous Government. It was the criticism made by my right hon. Friend. I shall not bore the House with a repetition of his speech. It was also a criticism made by many hon. Members who spoke in the debate in February.
My right hon. Friend and many hon. Members referred to changes on that occasion, but I do not believe that we have changed the measures proposed in a sufficiently radical fashion to bring about the improvements which were then called for. Nevertheless, my right hon. Friend said today that he was looking towards a wider concept of urban action areas and that we could expect to hear more on this matter, either later this evening or in Committee. I trust he meant exactly what he said, and that it will be closer in line with the criticism which we levelled in February.
Regional differences can be expressed in many ways. They can often be illustrated best by looking at a particular constituency. I have picked my constituency of Rhondda. I should like to quote from the 1971 census and the housing and population statistics.
The percentage of households in my constituency which either share hot water or have none is 22·6, compared with 8·2 per cent. in Great Britain as a whole. In the matter of absence of hot water, my constituents are three times as badly off as the average throughout the United Kingdom. For households with no bath, 36·7 is the figure for my constituents compared with 8·9 per cent. for Great Britain. When it comes to those who have no inside water closet, the figure in Rhondda is 46·7 per cent. as against 11·3 per cent. nationally. Therefore, our housing standards and the conditions in which my people live are three or four times worse than those in the rest of the United Kingdom.
That is why it is necessary to judge the Bill not only on how it solves the general problem but on how it affects areas such as Rhondda and certain other areas of England and Wales which share those miserable figures.
My right hon. Friend the Member for Blackburn (Mrs. Castle) drew our attention to the different problems in February. Both in real terms and in comparative terms, the housing problems in my constituency are more serious than they are in the rest of the United Kingdom. The Secretary of State has said that stress areas must come first. I think that the figures I have given clearly indicate, if stress means stress, that Rondda must somehow come into the designation of a stress area.
The first 33 clauses of the Bill deal with housing corporations and associations. They are not relevant to my constituency or to the needs of the majority of the valleys of South Wales. I do not suggest that it is bad to provide help for the corporations and associations, because it will no doubt be welcome in certain areas, but it does not assist areas like mine, large areas of industrial South Wales and other parts of the United Kingdom.
There is an urgent need of the building of houses to rent and of house improvements. As a result of the activities of the Conservative Government during the last three years, prices and the costs of mortgages have been rising and the house building programme has been declining. This has meant that waiting lists for council houses in my constituency increased from just over 200 to 1,700. I therefore welcome anything which is done, including the increase in public expenditure, which will lead to increased house building and more houses to rent. I trust that my hon. Friend the Under-Secretary of State for Wales will look most favourably at all schemes submitted to his Department by the Welsh authorities. I trust too that he will keep a watchful eye on the cost yardstick so that it does not become a limit and is not used to reduce the building of houses to rent.
The decline of the last three years has meant that many young married couples in Wales are being condemned to years of misery. Those of us who are married know only too well that all marriages suffer from strains without the difficulties of bad housing conditions. There is also the urgent problem of housing improvements. Again I shall refer to my constituency to illustrate the point. In my constituency 80 per cent. of the dwellings are owner-occupied. We are proud that our people want to buy their own homes and have done so to such a great extent. Unfortunately the economic conditions over the years have meant that 15,000 houses in my area lack some of the basic amenities. At the current rate of improvement, boosted to its high level by the 75 per cent. grant, our building force is capable of improving only about 300 of these houses a year. That means that even with the 75 per cent. grant it will be 50 years before those 15,000 houses are brought up to date. The Bill does not continue the 75 per cent. grant but in practice reduces it. It introduces three rates 75 per cent., 60 per cent. and 50 per cent., depending on the area in which the house is situated. Those different levels of grant can only lead to a lower level of improvements.
There is also the problem that in a closely-knit community the application of three different levels of grant will create divisions. How can it be, for example, that in Tonypandy Kenry Street should be outside the scope of the grants, Primrose Street should be a general improvement area and Eleanor Street, which is a bit worse, should be a housing action area? [ Interruption .] Jones Street is in Blaenclydach, which should be a housing action area because of the poor conditions there. The only fair and effective way of dealing with the matter is to enable the housing authority to make the whole of the borough a housing action area. The three different levels of grant will create a feeling of injustice among the people. They will certainly create friction between the owner-occupier and the council, because in the end it is the council that will carry the can. The council will be responsible for deciding whether an area should be a general improvement area or a housing action area.
About 22 per cent. of owner-occupiers in my constituency are old-age pensioners. They might like to have improvements carried out with the aid of a grant but many of them feel that at their stage in life they do not want to be bothered with the physical inconvenience of improvement grants. However, they live in homes which urgently need repairing. I welcome the repair grants because they are exactly what is needed, but the problem is that these £800 grants can be paid only on property inside a general improvement or housing action area. In many streets in Rhondda there are homes occupied by the elderly which are almost falling down about their necks. If these repair grants are aimed at the people who need this type of help, they should be given irrespective of where the property is located.
The Bill is like the curate's egg; it is good in parts and not so good in others. I urge my right hon. Friend to reconsider the bad parts or the parts which are slightly off so that he can give more equal and lasting benefits not only to the whole country but particularly to areas like mine which are true housing stress areas.
6.48 p.m.
I declare an interest which is not a financial interest. I am a member of a housing association which deals with a particular problem in my area; that of rescuing houses from becoming second homes when there is a shortage of first homes among my constituents. I am glad to follow the hon. Member for Rhondda (Mr. Jones) and I agree wholeheartedly with everything he said. He has taken up many of the points to which I intended to refer. The problem in his constituency is also experienced in many other parts of Wales and, no doubt, in many parts of England. For that reason I hope that the Government will take note of what has been said. I should like to add to the hon. Member's commendation of the two maiden speakers and welcome the wit in their speeches.
I address the House against the background of the appalling house building record in Wales in recent years. No doubt this matter will be discussed at greater length in the Welsh Grand Committee later this week. In the context of the Bill, however, it is worth noting that because of the failure to build houses in Wales housing conditions there have become quite unacceptable. In 1968 when the last survey was taken there were 92,000 unfit houses in Wales, most of them built before 1919. Rapid industrial development in Wales in the second half of the nineteenth century created an imbalance in the age distribution of Welsh housing so that 47 per cent. of it is pre-1919 compared with 35 per cent. in Britain as a whole. The housing stock in Wales is ageing. In 1972 the number of new dwellings per thousand of the population in Wales was only 5·4 compared with 6·1 in the United Kingdom, 10 in Denmark and 12·8 in Sweden. Because of this, we need not only urgent action to provide new houses but the maximum possible upgrading of older houses. The Bill has special relevance for Wales.
I turn my attention now to my constituency and another aspect of the housing situation. There is a severe problem in Gwynedd arising from the incidence of second and holiday homes. The proportion of the community's housing stock which is owned as second or holiday homes is as high as 40 per cent. in some parts of my constituency. That places an intolerable strain on the local community, which cannot compete with the cheque-book invasion from the distant cities. The price of houses is way beyond the reach of young married couples.
A housing association in my constituency—I am pleased to say that there is provision in the Bill for housing associations—recently received 80 applications from local people for a terraced house which it had renovated. That is a social problem of serious magnitude. I look to the Bill for a lead in giving local authorities the necessary powers so that they can come to grips with the situation. In that context perhaps the Minister will consider giving Wales its own Housing Registration Advisory Committee as outlined in Clause 14 because of the special characteristics of the Welsh housing situation as described by the hon. Member for Rhondda.
I am heartened by the provision of housing action areas, although clarification is needed regarding the use of that provision, especially in rural areas, and by the timetable which the Government expect to be effective.
One of the most serious aspects of the Bill is the definition of a housing action area, and reference has been made to the problems in that regard. There are whole areas in my constituency which require the provisions of Part IV. Sometimes an area of that kind will contain only a few isolated cottages. I suspect that the local authorities may be unduly restricted in the land area to which the scheme can be applied, there being a bias towards urban areas. Clarification is also needed of the reference in Clause 34(1)( b ) to the social conditions of the area. I trust that that will include the social conditions which arise from second homes.
Further, I hope that that is the intention of Clause 34(2)( c ), which states the objective of securing
I trust that the provisions of Clause 41(1)( a )—compulsory acquisition of land and premises situated on that land for the purposes of "proper use", as stated in Clause 34(2)( c )—will be interpreted as giving the district councils in Gwynedd the right of compulsory purchase of second and holiday homes to meet social needs. I assume that to be so after reading Clause 42(2)( c ), which makes specific mention of housing accommodation in the context of compulsory purchase. If that is not so, I urge that an amendment for that purpose should be made in Committee.
I welcome the provisions in the Bill by way of certificates of further occupation. This will ensure that grants are not given for second home purposes. I add a warning note on the dangers of loopholes. No doubt a husband will register one house in his name and his wife will register another house in her name. The Bill in its final form must ensure that such a loophole is closed. There is also need to clarify the term "holiday" in Clause 53(4).
The drastic measures advocated should not be scorned. Already the Isle of Man has found it necessary to introduce legislation to provide that
Jersey also has a housing law which provides in detail that people from outside the island are controlled in their use of the island's facilities. A report of the Jersey Housing Committee states: We expect the United Kingdom legislature to provide laws that meet the specific problems of Wales. If it fails to do so, the case for our own legislature is irrefutable.
I appreciate the hon. Gentleman's concern about second homes, but does he appreciate that our problem in Wales is that of building new houses? How does he propose to go about that?
I appreciate that there are two problems—namely, the problem in my constituency of second homes and the provision of more new houses. We need more new houses, and I should be delighted to see the Government committing themselves to a target figure of 25,000 houses a year. That would go some way towards catering for the present housing need and would enable us to tackle the backlog. Unfortunately, the highest target of the previous Labour Government was 22,500 houses and the latest figure was 20,000. I hope for a firm commitment from the Government.
Finally I turn to the grant aspect, and in particular the intention to allow the present 75 per cent. grant to be paid after 23rd June only to people who received sanction prior to 30th September 1973. Reference to this matter has been made by the hon. Member for Bodmin (Mr. Tyler) and the hon. Member for Rhondda. I see no possible justification for hitting those who would normally have completed their improvements but who were frustrated by the three-day working week. They were also frustrated by a backlog of planning sanctions.
I ask the Government to think again on that matter. If the Bill allows grants of up to 90 per cent. under certain conditions in housing action areas, why should the Government be miserly towards those who have already started the job that the Government profess to be so anxious to get under way? Reference has been made to £8 million a month. I prefer to think in terms of 15,000 homes a month and of an adequate amount of money being spent on homes that deserve attention.
Housing problems are not the exclusive characteristic of urban areas. There are severe housing problems too in many rural areas. In finalising the Bill and in implementing it, I hope that the Government will bear this fact in mind.
6.59 p.m.
Perhaps it would be convenient if I replied now to the exclusively Welsh points that have been raised by my hon. Friend the Member for Rhondda (Mr. Jones) and the hon. Member for Caernarvon (Mr. Wigley).
I think that the House recognises why house improvement is a crucial part of Welsh housing policy. I hasten to add, in case the hon. Member for Caernarvon interprets my speech as one that should give comfort to him as a nationalist, that the Government find the problems of Wales to be in common with those of Cornwall, or Blackburn, Grimsby or other old industrial areas that face a backlog of unimproved housing stock and the need to improve it.
Rather ungracious reference has been made to 75 per cent. grants. I think that it was ungracious to refer to them as a miserly extension. After all, many people expected no extension. In fact we have been able to go some way towards meeting the problems of hardship and to assist those who could well have expected to have completed a job that started nine or 12 months ago. The Bill's provisions will be welcomed by many householders whether they be in Rhondda, Caernarvon or Merthyr Tydfil. I know from experience that they have been anxious about the deadline of 23rd June.
I agree with my hon. Friend the Member for Rhondda that there are different housing problems. I had the privilege of serving on the Select Committee on Expenditure, whose report has been referred to. What struck me was the variety of witnesses who appeared before the Committee and the contrast between the problems of inner London—of stress areas in cities—and those of, for instance, a South Wales industrial valley community area or a rural area such as Gwynedd.
It was because of all these different housing problems that many of us critically scanned the Bill which was published and debated in February and inquired whether the housing action areas approach was the right one for the needs of homogeneous housing areas represented typically by Merthyr, Gwynedd, Rhondda and many other communities.
However, for the reasons given by my right hon. Friend we have decided to reintroduce the Bill and the concept of housing action areas. Rightly, my hon. Friend the Member for Rhondda has asked whether the reservations which we expressed during the debate on the Second Reading of the Bill in February still stand. Given how vital it is that there should be no hiatus—no crucial time lapse—between the phasing out of the present 75 per cent. grant arrangements and the introduction of the new grant structures in the Bill, I believe that we were right in this Bill to reintroduce the concept of the housing action area and to try to adapt it to suit the needs of Wales. That is chiefly why I have risen to intervene, to try to spell out how the concept should and can be adapted to deal with the specific needs of Wales.
My hon. Friend the Member for Rhondda did less than justice to the situation and perhaps in some ways exaggerated it, although he validly pointed to the situation existing in Rhondda, Merthyr and other industrial areas where between 30 per cent. and 50 per cent. of the housing stock consists of homes which are still unimproved and still lack one or more of the major amenities. What is becoming apparent is that, despite the success of the 75 per cent. improvement grant, we need a much more dramatic interventionist approach to house improvements if we are to save thousands of homes in Wales and, indeed, to save many of our older and successful communities.
One thing which has depressed me since assuming responsibility as Under-Secretary of State for Wales with special responsibility for housing is not so much the success of the 75 per cent. grant system, which hon. Members on both sides have rejoiced in, but now its apparent shortcomings. I was not aware until I came to office that the 1973 sample survey of housing in Wales, which was carried out to ascertain the number of unfit houses, suggests that there could be up to 150,000 houses in Wales which must be regarded as unfit.
I regard this figure with some suspicion, but it helps to put into perspective all the efforts of the past few years by successive Governments in the field of house improvement. The right hon. Lady the Member for Finchley (Mrs. Thatcher) mentioned figures for the last couple of years. Even though between 1968 and 1973 nearly 100,000 improvement grants, amounting to nearly £20 million, were paid out to improve private dwellings it is clear that we still have not succeeded in arresting the decline of our older housing stocks and, in particular, in saving those housing areas which could so easily become potential clearance areas without new dramatic initiatives to save them. There is a growing amount of evidence that the 75 per cent. grant, though a marvellous boost, has not reached a very large number of houses which are in the most urgent need of improvement, nor necessarily has the 75 per cent. grant gone entirely to those most in need of assistance to improve their homes.
For this reason, the whole emphasis on house improvement policy must dramatically change, and particularly the rôle of the local authorities in Wales. Their rôle must be transformed from that of a passive grant-approving organisation, which has almost overwhelmed them in the last two years, to that of an active promoter of house improvements in those areas most urgently in need of immediate rescue.
My hon. Friend the Member for Rhondda teased me a little and then reminded the House that the former Secretary of State, the right hon. and learned Member for Hexham (Mr. Rippon), in the last Parliament, under pressure confirmed that Welsh authorities would be able to declare the whole of their areas as housing action areas. I sympathise with this approach, because I spent most of the time during the right hon. and learned Gentleman's winding up speech trying to extract that commitment from him.
The right hon. Lady was the first to say that the housing action area concept implies a measure of selection and priorities; it involves making decisions, sometimes very difficult decisions, and selecting priority areas within a homogeneous area like Rhondda or Merthyr or most of our other valley communities. After all, the concept of a housing authority area means action. It means that action has to be taken by the local authority within that area. The concept will involve the local authority in the new and important rôle of persuading, encouraging, assisting and, in certain circumstances, compelling improvement in housing action areas.
Can the Minister explain why in England, under the improvement grant scheme, the ratio of improvements in the public sector to those in the private sector is about one for one, whereas over the same years in Wales it is about one to three in favour of the private sector, which suggests that the public authorities in Wales did not seem to be doing their job?
The hon. Gentleman should look at more recent figures which show that, certainly in the last 12 months or so, local authorities have been very active in improving their own council stock. We might not want to encourage them excessively, because the vital area, the salvation of the housing stock most urgently in need of improvement, still lies in the private sector, in the oldest owner-occupied properties and homes. If those are not saved the housing problems of the future will be very much greater. I will refer to the local authority programmes in a few moments.
Does not my hon. Friend think that his remarks rather skate over the position in the building industry? Although I might agree with the propositions he is making, in practice, particularly with improvement grants, there has been a great deal of trouble with what I would call the "cowboys" who have moved into the industry due to the scarcity of building trades craftsmen.
My hon. Friend mentions an important point which reflects the experience of many of us in our constituencies. The new rôle given to local authorities I see it as an important part of their rôle in the housing action area concept—is to take a much more active part in promoting every conceivable aspect of house improvement. One of the aspects which will have to be considered seriously is that raised by my hon. Friend.
This change of rôle on the part of Welsh local authorities will be time consuming. It will absorb the energies, administrative and technical, of our housing authorities. It will be important, therefore, that local authorities in Wales do not take on more than can effectively be achieved, otherwise there might well be a diffuse declaration of large areas and no effective action resulting. We must get action, as those terrible figures on housing conditions demonstrate. It would be useless to declare the whole of an authority's area as an action area if no real effective action were possible on such a scale.
However, I think that we can adapt the housing action area approach in a number of ways to suit the special Welsh housing needs. In the Welsh context, we think that the local authorities, in declaring housing action areas, should be able to use a finer mesh than will be needed elsewhere, so that a valley authority could declare a small housing action area—say, down to 50 houses each—so that its area could be more evenly covered than would be the case in a large action area with up to 10 times that number of houses. If, on the other hand, local conditions call for much larger areas to be declared, this should be possible. I was impressed on my recent visit to North Wales by representations I received that in many of our rural villages quite small housing action areas would be more appropriate. I readily agreed and confirmed with them, and I confirm again today, that we shall look sympathetically at such applications.
The use of the housing action area approach can assist considerably with social and housing problems in many of the rural villages which were discussed when I visited North Wales. It would be possible for local authorities in North Wales to declare housing action areas, and when a social need is shown for acquiring a second home it would be possible to do this assuming that it is within the terms of the Bill and within the spirit and the nature of the housing action area approach.
My hon. Friend the Member for Rhondda pointed out so graphically a large problem which he has in his area and which I have in my constituency. We think that we can encourage housing authorities like Rhondda and Merthyr, and others in the valley communities, with such a large proportion of housing stock in need of improvement, to declare a series of housing action areas over, say, the next ten years, so that those authorities have a comprehensive policy for dealing with the problem areas step by step.
In many communities the authorities would wish to declare their most difficult housing areas first, get some action going in those areas and, after a period of time, declare the next areas, and so on. This planned programme of expanding housing action areas to cover, possibly, the larger part, if not the whole, of a community will be perfectly in accord with the provisions of the Bill, and with our application of it in the Welsh context.
Our aim will be chiefly to ensure that action is taken in those areas most in need of improvement. Clause 50(4) of the Bill gives us power to exclude from the higher rate of grant particular categories of properties which are already at a satisfactory standard and will not have the highest priority for treatment. We would in this respect expect housing authorities to take action in their worse housing areas even over and above improving their own stock of houses, many of which have the basic amenities of an indoor toilet and bathroom.
I have tried to demonstrate this evening that we can by administrative flexibility, and by our understanding and knowledge of and our close relationship with the local authorities—which I as a Minister and my right hon. Friend the Secretary of State will seek in partnership to serve—try to achieve the result which are desired in the Bill. It is because of this extra administrative flexibility and our willingness to exercise that flexibility to ensure that the Bill is tailor-made for Wales that, despite my previous reservations, I can commend it, particularly the housing action area approach. to my Welsh colleagues.
7.14 p.m.
The House is fortunate in having had two maiden speeches in the debate which have been very humorous and extremely sincere. Both maiden speakers will be heard with interest and pleasure in the future if they speak in the same way as that in which they have spoken today.
My hon. Friend the Member for Romford (Mr. Neubert) began by quoting Robert Louis Stevenson's observation
I declare an interest at this stage. Some years ago I inherited a small line of old cottages in Glamorgan. They were much in need of improvement and with the aid of grants I have begun to improve them. I also inherited a large house which was partly let with furnished lettings, and thus from the landlord's point of view I have some knowledge, though in a small way, of the problems with which the House is concerned.
I have a quite close association with the tenants in both cases and this interest of mine has also given me a good understanding of the tenants' viewpoint. Some years ago in Cardiff I was chairman of a small cost-rent and also of a small co-ownership housing society. At that time I had a clear knowledge of the difficulties involved for such projects, despite all the help which could be given to them by the Housing Corporation.
I am anxious to contribute to the debate because Kensington has particularly severe housing problems as is well known. I am sorry that the former hon. Member for Kensington, North—the hon. Member for Mitcham and Morden (Mr. Douglas-Mann)—who made a special study of the problem, is not at present in his place, but I listened to his speech with interest.
The Bill will make a particularly useful contribution to the problems which are so markedly exemplified in Kensington. I welcome the proposals for housing action areas and I am glad to see that there is to be greater help through the Housing Corporation to housing associations.
I also welcome the second phase of legislation on service charges, which was promised by the previous Government. My hon. Friend the Member for Hampstead (Mr. Finsberg) has given great thought and attention to this problem and I believe that the solutions to it in the Bill may be largely derived from him. He will be thanked by many people in my constituency for his work.
I am not certain on this, but I believe that I may have a certain patent right regarding service charges because I was the first, I believe, to urge the former Government that they must tackle this problem. I cannot pretend that I was competent to suggest the precise ways through the legal jungles, but I believe that the Bill has hit on a satisfactory way to protect tenants whose service charges are sometimes inordinate.
It has been recognised on both sides of the House that the Bill is useful but that it leaves major strategic housing problems to be tackled. It will be interesting to see what contribution the present Government's team is able to make. I hope they will not spoil their approach by partisanship. A partisan approach will not be satisfactory. Landlord-baiters are the enemies of better housing.
If I may use a catchphrase, the housing problem in this country could be sized up by saying that there are too many people chasing too few rooms. It is an aspect of inflation and many of the available rooms are not always in the right places or are not available to rent at figures which people can afford.
It must be recognised that as a matter of policy we have in this country over-housed ourselves. We have decided that the housing standard to be provided is to be beyond what people could normally pay for and so there is now a long-established system of housing subsidies—quite rightly, in my view. A reasonable house will probably last four times as long as it takes to pay for it and to build a bad house is a tragedy because it will remain on the landscape providing restricted accommodation for much longer than it has taken to pay for the initial cost. Therefore, it is an investment blunder to fail to build to Parker Morris standards. Nevertheless we need to look at the standards of accommodation we are providing. In Central London there is a need for many more small units, not slum type or cramped units, but, for instance, one-bedroom accommodation. I find it hard to accept any lowering of housing standards.
Some housing subsidies are generous. The average subsidy for a newly completed council house today is about £20 a week. The subsidies that are available since the abolition of Schedule A to encourage home ownership can be very substantial through the tax concession. That, too, is something the value of which I recognise. I am not trying to withdraw it. But the subsidies are available only to those who already have secure accommodation, that is to say, who already belong to what one might call the established housing clubs, the freeholders, those in statutorily protected tenancies, and the council tenants. They already have secure and, we hope, for the most part, satisfactory accommodation, and they are the people who draw the subsidies.
But the people who need help are those who do not belong in any of those categories. The Housing Finance Act introduced an extremely generous scale of assistance for those in unfurnished and furnished accommodation, but the take-up has been appallingly low. I suppose that the take-up of the rent allowance has been only about a tenth of what it should have been. So far as I am able to ascertain, in Kensington, apart from the people in receipt of supplementary benefit and those in council accommodation, whose applications have been handled for them, only about one in 10 of those eligible for the substantial grants available under the Housing Finance Act have even applied.
That is a state of affairs that we ought to remedy I made an unpopular speech on Second Reading of the Housing Finance Bill when I sought to draw attention to the need for a housing subsidy to be included in the tax credit scheme. I am sure still that it is not right for local authorities to have the handling of the necessary means tests. If we are not ready to introduce a tax credit scheme that will include housing subsidies as one of the range of benefits, surely we should explore the possibility that when people make their tax returns, they be required to say what they pay for their accommodation and what type of accommodation they are in, so that at any rate the Inland Revenue would have the necessary information on which to decide how much rent allowance should be paid.
The provision of more money does not solve the housing problem but merely changes its character. For instance, if the teachers who are facing grave difficulties in central London were to be put in a position to afford the accommodation that they would think suitable, that would tend to push others out. The extra money would not call extra lettable rooms into existence. The Government have two problems—to extend subsidies to those not getting or not drawing them, and to arrange for an additional supply of accommodation to match. Otherwise, the extra public money will simply tend to push up the general cost of housing.
The Government may be building too much hope on the proposal to provide more security. Providing more security does not help the minority who are totally dissatisfied with their accommodation, or who have no accommodation at all. I look forward with interest to seeing what is done about extending security to the furnished sector. A case can most certainly be made for doing so and an equally strong case can be made against it, as we saw in the Francis Report.
Would not the hon. Gentleman recognise that one of the reasons why tenants in furnished accommodation do not apply for allowances is that they are afraid of being turned out because of their present in-security? Does not that explain the point that the hon. Gentleman made earlier?
I should like to study that. It seems like a non sequitur , but as the hon. Gentleman is well informed on the subject, I shall certainly study what he said. If there were instances of that, we should have to adapt the administrative system to try to overcome it, because it would be absolutely wrong.
I was saying that the Secretary of State was all too easily accepting the idea of a decline in the privately rented sector. If he applies his considerable ingenuity, he may find a way of arresting the decline or even reversing the trend, but he will not help the matter by his instant rent freeze.
There was one aspect of that which I thought particularly small-minded and I should like here to protest about it. That was his decision that the cost of heating should not be handed on to tenants, even if they were well able to afford it and were receiving the higher wages that would enable them to pay higher rents in respect of heating costs. He has decided that the landlord in the private sector would have to absorb the whole of the heating costs this year.
Even in a small house, where the landlord provides central heating, the higher oil costs that are now coming may add scores of pounds per month to the landlord's bill. I do not think it right that we should make it a statutory provision that the landlord has to bear the whole of that heavy extra cost.
I should like to see a system that would encourage builders to build to let. It has been Conservative policy—it certainly was some years ago—to extend the depreciation allowance to builders in this sector in the same way as it is available to builders who put up commercial properties. The Treasury has opposed this idea on the grounds that once there is an escape from the present definitions, there is no end to the concessions that would have to be made. But I think that it is an administrative problem and should be overcome, and I should like to suggest a way in which it might be overcome.
Owners too should be encouraged to let. Today I had an answer from the Under-Secretary giving the latest available complete figures of the number of unoccupied residential properties in inner London. He gave the census figures for 1971 which showed that there were 58,100 empty dwellings in inner London on census night, which is 5·4 per cent. of the total number of dwellings in inner London. Some were vacant no doubt because they were in the process of being sold, or for some other good reason. But if we were to add the many more rooms that are potentially lettable but that are not let for various reasons, we should find that we have a large element of the solution that we are trying to find in inner London waiting and ready to be made available. It is administrative difficulties, misunderstandings and lack of incentive that are preventing these rooms from being put to better use.
Tenants should be given access to the subsidies that are available to the other housing classes under a new system that should be devised and presented by the Government as an entirely new departure. I published an article on the subject in the Sunday Times Business News at the height of the election campaign when, I think, it did not receive very much attention. We need to devise an entirely new form of housing tenure half way between a freehold and a lease. Perhaps we may use the name "shorthold" for what I am trying to describe.
I should like to see a new form of tenure that might last for three, five or seven years. During that period it would give absolute security to the tenant at a fixed rent, and it would definitely come to an end at the end of the period agreed at the beginning of the tenure.
For the builder it would be an incentive, because if the accommodation were put on the market and three, five or seven years later it were possible to renegotiate the rent, if there had been significant changes in the value of money in that time the builder would be able to adjust his profits accordingly. Also, if we clearly defined and gave a clear legal definition to "shorthold tenancy" it would be something that the Treasury could accept for the purposes of depreciation allowances without feeling that the barriers were going to crash down.
For the owner of accommodation that is not let it would provide a definite incentive, for it would be recognised that a "shorthold" would be half way between a freehold and a lease and what he received should be regarded partly as capital and partly as income that would help to overcome the fact that there may be disadvantages in letting empty rooms and that a cash incentive must be given to get them on the market.
There would be no loss to the Revenue in making a cash concession for the letting of rooms that now stand empty and depreciating. because the Revenue would stand to gain, even though it did not gain as much as it might.
The advantages for the purchaser-tenant need spelling out. The essence of the "shorthold" would be that it would be at a fair rent. I accept that principle and I should be willing to apply it. Thus, for the tenant there would be no exposure to market forces—or no direct exposure to unrestricted market forces—which can be extremely strong in central London. The security of tenure would be agreed before the beginning of the arrangement and would be for several years.
This system would cater also for the large number of people—I believe that there are a great many of them—who cannot afford to start buying a freehold and who do not need to do so, either. For example, for a good many people just starting a family or, perhaps, working in a part of the country where they do not intend eventually to settle, to start buying a freehold is an expensive mockery, because they will have to dispose of their house before they have paid for it as they move or the nature of their housing need alters.
The flexibility in the privately rented sector which was provided in the old days by the large number of rooms available for rent is too important to be sacrified. We must use our ingenuity to maintain it. The suggestion which I have made needs to be elaborated in greater detail, of course, but I believe that it would be worth the while of the Department to consider it seriously. It comes not just out of my own head but out of long conversations with people closely concerned with the housing problem, and I have adapted the concept in the course of those discussions so as to take note of their objections. I believe it to be a workable and useful idea.
For the nation as a whole, if it helped to make better use of what we already have, it would be a relatively cheap way of helping to solve the housing problem. I am convinced that not only in inner London but throughout the country there is a lot of accommodation which we are not putting to the best possible use.
So much for that suggestion of mine. I hope that I shall be in order in tabling amendments which will permit the Committee, or perhaps the House on Report, to consider the idea further, and I shall do what I can to make that possible.
The Bill is a useful measure. Obviously, it will receive a welcome on both sides, and I hope that it will be implemented quickly and effectively in all parts of the country.
7.32 p.m.
It is always a pleasure to take part in a debate with the hon. Member for Kensington (Sir B. Rhys Williams) because he throws out such stimulating ideas. In his closing remarks the hon. Gentleman stressed the amount of empty property to be found in London and other conurbations. I believe that that emptiness is attributable not to the reasons which he advanced but rather to the insistence of owners, especially when they are property companies. on holding their property for a while until they can get vacant possession of the whole building so that they may sell at a much greater profit than they would obtain by letting it at fair rents.
In my area—I think that the same is true in many other conurbations—the only way one can find in practice to deal with the situation is compulsory purchase. This is why many thousands of residents who do not want to be council tenants and who in the past would never have dreamed of asking to become council tenants now petition their councils to buy up their properties. It is the only way for them to secure protection from the activities of property companies trying to get them out in order to obtain vacant possession.
That is a fact of life. Regrettable though it may be to many people that it leads to creeping municipalisation in certain areas, such a course seems to be the only way of protecting those tenants from the conditions which they are suffering.
I apologise that because I had to be in a committee I missed some of the debate, but during the part which I have heard there seems to have been a general welcome for the Bill. I am afraid that I regard it as a bad Bill which will not, I dare say, do much harm, though I think it will do some, but which will at best be irrelevant at least to the housing needs of the conurbations, and with housing conditions in our conurbations as bad as they are we simply have no time for an irrelevant Bill.
I exclude Parts I to III, which deal with housing associations, and I shall not comment on those. I am thinking of the parts of the Bill dealing with housing action areas, improvement grants and the new proposals for compulsory improvement.
Before I come to those, however, I ask the Minister who is at present on the Front Bench to report to his colleagues this criticism of Clause 103, which gives to all tenants the right to know their landlord, a right which is at present possessed only by tenants paying a weekly rental. That right now possessed by weekly tenants is 10 years old and was the result of a Private Member's Bill which became the Landlord and Tenant Act 1962. It is a beautiful piece of legislation. It gives to weekly tenants the right to know their landlord, the right to have a rent book—which, of course, they previously possessed—and the right, if the landlord is a company, to have a list of ail the directors of the company, with their addresses.
Clause 103 of the Bill will give to all tenants, including those who already have it under the Landlord and Tenant Act, the right to know the name and address of their landlord if they inquire. But I wonder why we are duplicating that right in respect of weekly tenants, and in respect of other tenants conferring a right which is not identical in terms to that possessed by weekly tenants at present. As I read the Bill, there are two differences.
Weekly tenants have a right to have a list of the directors of the company if the landlord is a company. Why are we not giving that right to non-weekly tenants? As I read the Bill, it does not seem to be given.
Second, there is a very good provision in the Bill regarding what must be provided as the address of the landlord. It is laid down that this must be either the home address or a business address. I take it that that excludes the possibility of a landlord giving the name and address of an agent as his address for the purposes of the Bill. I should like to think that this small piece of the Bill arises from a proposal which I made to the previous Housing Minister, and I should like to see the same provision applied to weekly tenants under the Landlord and Tenant Act and not restricted to the right conferred by this Bill.
Coming to the main heartland of the Bill, I think—as I thought about three months ago when it was introduced in its previous form under the Conservative Government—that it is essentially misconceived. The crux of the Bill is the part dealing with housing action areas. I take it that the idea in the minds of those who conceived the Bill is that there are parts of the cities where there is decent housing and nice conditions and there are other parts where there are near-slums, and one can somehow draw a line between these two geographical areas.
In the part of London which I represent, no such line can be drawn. It is not that one street is bad and another good in terms of physical conditions, but rather that one house is bad and right next door there is another house which has been done up. I can see no basis upon which any local authority could draw the boundaries of a housing action area so as to be able confidently to say "This is part of our area which needs urgent treatment, special powers, specially high rates of grant, and so on". It is in that sense that I say that the Bill is essentially misconceived.
I regard it as misconceived also in that it seems to treat as the problem the bricks and mortar of an area, the suggestion being that we have houses in bad repair, lacking lavatories, lacking bathrooms and so on, and that if we could only get the houses right the social problems would come afterwards and be corrected. In fact, in most of the areas where there are bad physical housing conditions it would be extremely easy to put the houses into decent order if one did not care about who lived in them. There would be no difficulty in providing every house in Barnsbury—the up-and-coming, not to say the "up-and-come", part of Islington—with full amenities if one did not mind a middle-class family moving in and replacing the family on average earings whose presence near the centre of London is essential if the work and services of London are to be maintained. It is a social and not a bricks-and-mortar problem.
The Expenditure Committee proposed in its report on improvement grants, when we knew what was in the mind of the previous Minister for Housing and Construction, that it should be possible for a local authority to declare a housing action area over the whole of its territory if it thought that was necessary. Having listened to my right hon. Friend's speech, I am not sure whether he accepts that proposition. I cannot see how some local authorities can choose one part of their district as against another for special treatment. I cannot see how Islington could decide to pick these few streets rather than those few streets for special treatment.
The Bill provides that the Minister is to guide local authorities in their selection of housing action areas. I do not know whether there are precedents for this. There are usually precedents for the most awful provisions that are introduced into statutes, but it is new to me that there may be guidance which is statutorily enforceable, as it is according to my reading of the Bill. The Bill states that in selecting their housing action areas local authorities are to abide by the guidance given to them by the Secretary of State. Guidance which has to be adhered to under statute is not guidance. Guidance, if it is to have statutory force, should be not in the form of a circular from the Department but in the form of regulations which would be subject, probably by negative procedure, to the approval of the House.
What extra powers will a local authority have within a housing action area? In the presentation of the previous Bill and of this Bill the suggestion has been that within housing action areas local authorities will have a much wider range of powers than they possess at present. I question that. There will be repair grants in housing action areas; that is very good, but they are a modest figure. There will be external works grants; that is good. but again it is modest. There will be higher improvement grants, which is regrettable. There will be the new compulsory purchase powers. The compulsory purchase powers in the Bill are not significantly wider than those conveyed in Part V of the 1957 Housing Act. Will the Minister tell me of any circumstances in which it will be open to a local authority to initiate a compulsory purchase order under the powers of the Bill which it could not have initiated under the powers of Part V of the 1957 Housing Act? For many years the difficulty with compulsory purchase has been not lack of power on the part of the local authority to initiate an order but lack of readiness on the part of central Government, under Conservative Governments and perhaps under some Labour Governments, to confirm an order when it reached them.
Improvement grants seem to have got behind a blind spot within the Chamber. Someone who gets a £1,000 improvement grant—which is the normal grant—gets about as much cash as a single person who receives social security for about 18 months. A person who does that is regarded as being anti-social in receiving that amount of other people's money. It is thought to be necessary on balance but it is regarded as unfortunate.
By contrast, the right hon. Member for Finchley (Mrs. Thatcher) judged the success of improvement grants simply on the basis of the amount of money spent. There has been a great deal of abuse of improvement grants, as was shown in the Expenditure Committee's report, especially when improvement grants were given to property companies and to owner-occupiers who could and would have done the improvements with their own money if public money had not been positively thrust upon them. We therefore concluded that a considerable degree of discretion should rest with local authorities in giving grants.
I see no justification for providing a 75 per cent. grant for owner-occupiers in housing action areas. Why should a person with an income of £5,000 or £6,000 a year, occupying a house in inner London which might be worth £40,000, receive £1,500 towards improving his home when in the next street a person in identical circumstances receives £1,000?
An even worse anomaly arises with people believed by the local authority to he suffering hardship. In a housing action area an old lady who is suffering hardship and needs improvements made to her house will be able to obtain £1,800 of public money when in the same street another person in identical circumstances, suffering just as much if not more hardship, will be able to obtain only £1,000 of public money for exactly the same purposes. I cannot see the relevance of the hardship criterion to the existence of a housing action area. Both concepts may be useful in a Bill like this but I can see no justification for giving extra money on grounds of hardship in housing action areas and not outside housing action or general improvement areas.
What does "hardship" mean? There is no definition of it in the Bill. Discretion is thrown, apparently without guidance, upon the local authority. I imagine that it will not be long before a circular is issued from the Department telling local authorities firmly what "hardship" constitutes in the Secretary of State's view. That guidance might not be mandatory, and local authorities might interpret "hardship" differentially in different parts of the country or, perhaps, in two different boroughs in London.
Local authorities will tend to give the grant because the proportion of the total that they have to pay is infinitesimal. In a housing action area a local authority, in deciding to give a grant of £1,800 in a hardship case, will have to find only £180 out of the rates, the other £1,620 coming from the Secretary of State. Therefore, there will be a tendency for local authorities to say "Yes" rather than to be negative.
I should like the Minister when he replies to confirm that it will be permissible under the Bill for a local authority to say "whatever powers are given in the Bill in respect of 75 per cent. grants, we do not wish to avail ourselves of them. We intend in our borough to give only 50 per cent. grants". If a local authority takes that line, I take it that there is nothing in the Bill to prevent its doing so. The Bill gives local authorities the maximum they can award and tells them that if they give less than the maximum they must set their rents at a certain level. But they are not debarred from giving less than the maximum. If a local authority in its judgment believes that it would be fairer, except in respect of its own accommodation, to give only 50 per cent. grant and to state as its reason for so doing that it would be fairer all round, I imagine that that would be legally within terms of the Bill.
Thirdly, an important section of the Bill deals with compulsory improvements. Neither in the presentation of the Bill to the House by its previous father nor by its present adoptive parent has any comparison been made between the powers conferred by this Bill and those already on the statute book in Part II of the Housing Act 1964 for compulsory improvement. There are small changes in procedure which presumably are intended to speed up the process and make it more likely to be used than the 1964 provisions have been. I have seen no explanation of the difference, and in so far as I have attempted to make the contrast myself I have discovered that there does not seem to be very much difference.
I conclude that the concept of housing action areas, unless very much widened, is bogus and not designed to meet the need for representations; that the powers conferred within housing actions areas are not much greater than those which are now on the statute book; that the higher rate of grant in housing action areas and general improvement areas will be likely to waste a certain amount of public funds; and that the compulsory improvement provisions in the Bill are not much different from those which already stand on the statute book following the 1964 Act. I wish that some of these things had been included in legislation intended to meet these problems.
We also face the problem of repairs and, what is more important, of getting them carried out. One does not get repairs carried out merely by paying for them. The reason why landlords do not undertake repairs is not that they cannot afford to do them but that they want the roof to leak because that is the way to get rid of tenants. The only way to get repairs undertaken is by enforcement. Local authorities now possess enforcement powers, and they are strong powers, but the procedure is prolonged and therefore expensive. I should like to see a provision introduced into law by which the cost of forcing a landlord to do repairs would be chargeable to the landlord. At present, if eventually a landlord does not carry out repairs, the local authority can undertake them and charge the landlord or, if necessary, recoup the money from rent. But what a local authority cannot obtain from rent is the cost of the administrative work. It is the cost of administration that often deters many local authorities from ensuring that repairs are done.
I should like to have seen a minimum fine introduced in respect of harassment. Magistrates in their unwisdom often will not apply a big enough fine for this offence, even though Parliament's wish has been made clear by removing any upper limit on the fine if the matter is dealt with on indictment. I should like to have seen a code of conduct introduced for estate agents. Furthermore, I should like to have seen a higher rate of improvement grant such as the 75 per cent. figure adopted by local authorities for their own dwellings. Above all—more important than anything contained the Bill—we should have a public declaration by the Secretary of State, whose views have been made well known, that when compulsory purchase orders reach his Department they are likely to be approved in far more cases than in the past. If that were done, we would not need greater powers for local authorities to initiate compulsory purchase orders, because they have that power at present, but we must be sure that when orders go to the Department they are likely to be approved.
I am sorry that I have been so critical of the Bill. I do not think that its provisions will do great harm in my area—indeed, they will do some good—but I think that it will involve wastage of public funds. I hope that in some small respects the Bill will be open to amendment in Committee.
7.58 p.m.
I listened with interest to the remarks of the hon. Member for Islington, South and Finsbury (Mr. Cunningham) and wish to take up one of the many points he made. I was sorry to hear him say that he thought it would inhibit the declaration of housing action areas if one or several properties in a street or area had already been modernised and improved. I know the hon. Gentleman's constituency fairly well, and one of its best characteristics is the fact that in a number of areas private and council developments are mixed together quite satisfactorily. I do not see why that point should inhibit the formation and continuation of a housing action area.
I thought the most interesting contribution made from the Labour benches was that deployed by the hon. Member for Mitcham and Morden (Mr. Douglas-Mann). I was pleased to hear him say that incentives should be given to property owners to let rooms in, or parts of, their houses. I believe that the hon. Gentleman holds a fairly prominent position in the Labour Party's back-bench housing committee. This is one of the most encouraging suggestions I have heard for a long time.
Unfortunately, the hon. Gentleman spoilt his proposal by going on to talk about compensation in the event of municipalisation. He suggested that a form of housing stock should be introduced under which the interest to be paid to a person dispossessed should be related to the fair rent level. If this is implemented it must be remembered that rents are artificially low, and compensation which could be paid by way of stock of that nature would bound to be below the market price.
I welcome the Bill. I could hardly do otherwise as it is broadly the Bill that was introduced by the Conservative Government. I wish to concentrate entirely on that part of the Bill which deals with the voluntary housing movement. I wish to declare my interest since I am chairman of a local board of one of the national housing associations.
I feel that there is something vaguely ironic about the voluntary housing movement in its present form and the importance given to it by both sides of the House. This is brought about by the over-rigid party dogma of all political parties. If the Conservative Party were to give greater support to municipal housing in all its forms and if the Labour Party were not so anti-landlord and did not regard all tenants as a form of exploited angels, if the Liberal Party were not so mesmerised with site value rating, and if the Scottish National Party were not always urging us to build houses in Scotland with English money, all would be well. There would be no housing problem.
We are now paying the penalty for what has gone on before. In those circumstances, the idea of a voluntary housing movement probably would be unnecessary. It is because successive Governments of both major parties have combined to dig the hole in which we find ourselves at present, it is because we know that we need at least 400,000 new houses every year, with at least 250,000 conversions, and it is because we know that we cannot succeed in obtaining them without the co-operation of all councils, all landlords, all sections of the building industry and all political parties, that we turn pathetically to the one piece of common ground between us.
The situation is getting worse and not better. The Labour Party has espoused the cause of municipalisation. Suppose that the Government are successful in imposing this policy—and it is not very difficult if they stay in office; they already have powers to do it. It will be very expensive, but that is a consideration which has not often weighed with the Labour Party. If it is carried out in any kind of widespread fashion—and I am not averse from councils purchasing properties in certain circumstances, some of which have been described by the hon. Member for Mitcham and Morden—what will be the reaction on the Opposition benches? What will be the reaction throughout the country amongst owner-occupiers, people who are not municipal tenants and others who are? It will be fierce and immediate. There will be strident voices asking for a break up of this impersonal, monopolistic and, in many cases, inefficient council landlord. We on the Opposition benches will be forced into drastic measures to enfranchise council tenants, and they will not be measures of the kind, talked about in our manifesto, of compulsory sales at market price less 20 per cent. They will be far more generous than that. They will have to be. They will be measures on the lines of what was done before over tithe redemption, with some form of standing charge on the property handed to the tenant there and then.
This policy will be just as tragic and just as wasteful of resources as municipalisation. Neither policy will add one penny to the sum spent on the provision of new or modernised housing.
It is constantly said that municipalisation will not mean a single additional house available to people. Will not the hon. Gentleman take account of the fact that in the conurbations there are many dwellings which are empty and which will be used only if a housing association or a local authority becomes the owner of them, and that in that sense municipalisation, or getting them into the ownership of housing associations, really adds to the number of rooms available to people in the area?
I said that. I said "in certain circumstances". I referred to the instances which the hon. Gentleman himself mentioned in which I was prepared to support the take-over of property by councils, but if it is done in a widespread way it does not add a penny to the sum put into housing and the provision of new or modernised housing in the country as a whole.
What is really lacking is resources. We do not put enough of our resources into housing as a whole. That is my point. Till we get far larger resources diverted into housing, till we get better management and cease neglecting one sector in favour of another, we shall not come anywhere near solving the housing problem.
This is especially true of the voluntary housing movement. It is a very small movement, but it is a rapidly growing one. At the moment it commands a very small percentage of both new building and the total housing stock of the country. In the last calendar year a little more than 10,000 new houses were built and 5,000-odd conversions were carried out, but the movement can grow and can flourish if it is given the two requirements that it has—money and management.
As for money, we must question whether the sums involved in the Bill, £400 million or up to £750 million by order, are really sufficient to give the movement the impetus that it needs, especially when we consider that the advances made under the 1964 Act have to be included in the £400 million. However, I must give the warmest welcome to Clause 10 which allows the Housing Corporation to give guarantees for sums borrowed by registered housing associations outside the national sector. This is a power which is long overdue. I remember pressing it upon my right hon. Friend the Member for Brighton, Pavilion (Mr. Amery) at least three years ago. It has been used to great effect by the Federal Housing Administration in America, and it could result here in a substantial inflow of funds from private sources which at the moment are deterred from entering the private rented market by political uncertainties. Here again we must question whether the sum involved of £100 million is sufficient. fhat remains to be seen. Undoubtedly it is a step in the right direction.
We have heard a great deal about conversions today. This is an aspect of the programme in which housing associations can play a real part. People do not realise till they try to do them how difficult conversions are. Councils themselves, especially in London, find the conversion problem very difficult. As a result there are large numbers of properties empty in certain London boroughs—owned by the councils—simply because they cannot get round to converting them in a reasonable time. This is where the voluntary housing movement can help.
I welcome the proposals to set up a register of housing associations and to ensure that one or two housing associations which have given the movement a bad name are brought to account. It is to be hoped that this will provide the vehicle for better management and organisation and ensure that the registered housing associations have sufficient management drive and expertise.
There is one aspect of registration about which I should like an answer from the Under-Secretary of State. As the Bill is drafted, there is no right of appeal against a refusal by the Housing Corporation to register a housing association. Obviously there must be a right of appeal to the Secretary of State. I hope that the Under-Secretary will look favourably at that in Committee.
This is a matter which, obviously, has been put to us. I do not think that I can go further than to say that it has been put to us and that we are considering it carefully. That is all that I can say, and I say it without commitment.
I am grateful to the hon. Gentleman. He realises that there is a right of appeal against the removal of a housing association from the register. I am sure that he will agree that the same should apply to a refusal to register an association.
Finally, I ask that payments under Part III should be made retrospective to the First Reading so that the planning of the many projects at the moment held up by housing associations waiting for the Bill may proceed.
It is right to draw the attention of the Government to the severe difficulties being experienced by a number of associations which entered into schemes before the 1972 Act. A number of them borrowed money on a variable rate of interest basis and are in considerable difficulties because the permitted rise in rents has not been sufficient to offset the rise in interest rates. I hope that the suggestion made by the hon. Member for Mitcham and Morden will be considered. A discretionary power should be conferred upon the Secretary of State to transfer these individual schemes on to the grant basis when the Bill becomes law. Nothing would destroy confidence in this young movement quicker than the failure of one or two associations, with the Government exhibiting complete in-difference to their fate.
Those parts of the Bill concerned with the voluntary housing movement are a great step forward and have been welcomed on all sides. I join in this welcome and look forward to the day when this movement assumes a major part of the the housing effort in the country as a whole. I am sure that this can and will be so if the idea and philosophy behind those parts of the Bill is followed up.
8.11 p.m.
I welcome the Bill in part, but I agree with some of the phraseology used by the hon. Member for Bodmin (Mr. Tyler) who said that it is a palliative, not a major change in our house-building programme, and that it will not be of a major dimension.
Some hon. Members appear to have grabbed with both hands the suggestion that improvements are a substitute for major slum clearance. I do not accept that argument at all. My right hon. Friend the Secretary of State referred to large-scale slum clearance in the past having been overdone. At the time that major cities were indulging in massive slum clearance, no other options were open to them. Since about 1950 some cities have cleared the worst housing that this country has known to the extent of between 50,000 and 80,000 units per city. What would have happened if we had approached this problem as the Bill seems to suggest? To have nibbled away at the problem would have meant that it was with us for the next century. I believe that the situation is changing. Because of the way in which the job was tackled, more options are now open to us and we can be more selective regarding improvement, renovation and conservation.
Some hon. Members have indicated that there are enough housing units of a kind in the country to house the whole population if they were redistributed. That is complete nonsense. The statistics show that if we were to do that we would get a bonus, but there would still be a tragic short-fall in the numbers of housing units. I believe that, whether we refer to numbers or not, we must get back to a new building programme of between 300,000 and 400,000 new units a year. Even so, that will just about keep pace with increased demand. My worry is that if there is over-emphasis on improvement as against new building it will steal away from the new building programme the vital building resources needed in that sector.
It is said that an increasing number of people want housing accommodation through housing associations or co-ownership schemes. That may be so in certain areas. I agree with my hon. Friend the Member for Rhondda (Mr. Jones) that the Bill may not have the same impact in some areas as in others. I think that it will be a tremendous boon in the London area, but it will not have such a dramatic effect in other areas.
I have referred to housing associations and co-ownership schemes. It appears that though some of the large housing authorities have been building between 2,000 and 3,000, and in some cases nearly 4,000, new units a year, during the last three or four years the demand for housing has increased, not diminished. I suggest that if some of those authorities opened their housing lists and removed all qualifications—for example, age limits, residential qualifications, and so on—we would find a further upwards explosion. A large authority with which I am associated has the highest building record of all major cities outside the GLC, but its waiting list is now longer than it ever was because it has lowered the age limit to 18. I do not believe that because the Bill sets out to help the Housing Corporation and, through it, housing associations there will be a dramatic reduction in numbers on waiting lists. That is complete nonsense.
The right hon. Member for Finchley (Mrs. Thatcher) twice referred to municipilisation or nationalisation. She said that the Government would extend building by direct labour. During the last three or four years the placing of contracts has become extremely difficult throughout the country. Some authorities, if they had not had large direct-labour building organisations, would have had their house-building programmes decimated. In the last 10 years one large authority has built 15,000 houses in competition. I am not pleading for a monopoly for direct labour. That would be very dangerous indeed. Building by direct labour must be done in competition, but I think that it has a place. To talk of the private sector being the sacred cow that can do no wrong is complete nonsense.
Those of us who have had responsibility for placing building contracts know that, because of the cost yardstick and the escalation of costs in recent years, in some areas it has been a question of Hobson's choice because only one tender has been submitted for large contracts. I hope that when the Minister considers amendments in Committee he will seek to do something about the cost yardstick. It is a false economy, a hindrance, and the sooner it is done away with the better.
The hon. Member for Bexleyheath (Mr. Townsend) in his maiden speech spoke about the sale of council houses. I must take him to task. The Leader of the Opposition, then Prime Minister, made that subject a plank for the General Election. But what has happened? We are seeing the first results of some of the council houses that were not so much sold as given away. I can cite an outstanding example of a house in a large city that was valued at £2,400 in 1969, but, with a 20 per cent. reduction, was disposed of for about £1,900 with a five-year covenant. Therefore, the buyer got a bonus of between £400 and £500. As soon as the five-year covenant was up, that house was placed on the market valued at £8,500. The sale was completed and the local authority was asked to provide mortgage arrangements for the purchaser. This was in an area of acute housing stress. I am not talking about the sale of council houses in areas where they are in abundance.
Of course, that house has to be replaced. But at what cost to the taxpayer and the ratepayer? It is calculated by that authority, based upon the last contract for 150 houses, that the cost will be approximately £10,000. When that fact was made known the sale of council houses was not very popular with either council tenants or ratepayers in general. Therefore, let us tell the truth about this matter. If anybody can justify giving away public property that is in short supply on bonus terms such as that I do not think that he can call himself a guardian of the public purse.
There is a footnote to that incident. In 1971, before the reorganisation of local government, there was a mini General Election. A total of 33 seats were up for election, with three candidates for each. The main plank of the Conservative Party's campaign was to increase that 20 per cent. reduction to 30 per cent., which would have meant that the woman who bought the house for £1,900 would have had almost £800 of public money handed out to her. The Conservatives were completely and utterly decimated at the election and the Labour Party achieved the largest majority in its history. I ask hon. Members to consider whether there is a bonus to be obtained at the ballot box by giving away public property.
I welcome those parts of the Bill that will affect the public sector. I do not think that conurbations outside London will be as dramatically affected as has been suggested. I support the extension of the 75 per cent. grant, and I do not agree with my hon. Friend the Member for Islington, South and Finsbury (Mr. Cunningham) that this is a bad investment. If it is possible to extend this provision—and we have heard a figure of £8 million mentioned—I should like that to be done to eradicate some of the injustices which have occurred and which are no fault of the people who place the contracts.
I should like the Minister to consider raising the eligible expenditure figure from £2,000 to £3,000. No doubt when the former figure was set it was realistic, but I think that it is reasonable to ask for it to be updated to £3,000 because of inflation which nobody has been able to control.
Because of the new powers being given to the Housing Corporation, it may at times appear to be on a collision course with a local authority. I support the activities of the corporation, but I should like to see it acting in conjunction with the local authority in whose area it is operating, otherwise there could be some disastrous effects.
There could be competition for land, for labour and for resources in the general sense. I hope the Minister will say that the corporation should act in conjunction with local authorities and that if there is a dispute it can be referred to the Secretary of State with a view to getting a rapid settlement so that any ill feeling is not allowed to continue to the detriment of the housing programme as a whole.
8.24 p.m.
I should like to take up one or two of the remarks of the hon. Member for Leeds, West (Mr. Dean). He made a reasonable point when, talking about municipalisation, he said that nobody wants a monopoly of either direct labour or private building because competition is a good thing, but one point that he overlooks in the desire of the Government and of most Labour-controlled local authorities to gather unto themselves the maximum number of properties is the growing problem of maintenance.
I do not believe that Leeds or the GLC—under both Conservative and Labour control—have ever given a good service to those tenants who constantly complain about a lack of maintenance. We all know that to be the case, and what worries me is that local authorities will add to their stock of houses but still not have an effective means of meeting the complaints of their tenants.
One of the main reasons why most local authorities did not provide the maintenance service that they should have provided was that rents were so depressed that the amount was inadequate for maintenance. That happened irrespective of which party was in control. This matter must be considered within the general question of housing finance.
I am grateful to the hon. Gentleman for his spirited defence of the Housing Finance Act. What he has just said is at variance with what was said by his hon. Friend the Member for Islington, South and Finsbury (Mr. Cunningham) in his attack on landlords, and I shall come to that in a moment.
I take up what was said by the hon. Member for Leeds, West about the sale of council houses and flats. It is essential to speed up the process of selling these properties. I see nothing wrong with doing that. On the contrary, there is something intensely immoral in telling a council tenant that he shall never own his own home.
I am content to fight elections on the basis of selling council property. After all, that was the major plank of the Conservative campaign at the borough elections in Bexley, and the citizens of that borough will again be able to buy their own homes. I hear a reference to Camden. We did win some seats there, though not enough. However, there will be further opportunities to change that, I am sure.
The housing problem is not helped by what was said by the hon. Member for Islington, South and Finsbury. He spoils a good case by his pathological hatred of landlords. He speaks of landlords not being prepared to repair their properties because they want to drive out their tenants. Many of us know from our constituency postbags that many small landlords do not have sufficient money to carry out work on their properties. They desperately want help, and frequently they welcome the service of a notice under what was the Public Health (London) Act which enables a local authority to do the work and take a charge on the property and the rent until the work is done. The hon. Gentleman does a disservice to the cause of housing by what he says.
I join those who have complimented my hon. Friends the Members for Rom-ford (Mr. Neubert) and Bexleyheath (Mr. Townsend), both of whom have been colleagues of mine in local government, and I am delighted that they are here.
I welcome, too, what was said by the Secretary of State. The right hon. Gentleman appeared to be going out of his way to say that he was looking forward to amendments being made to his Bill. I am not sure whether he was welcoming only amendments that he intended to make, but others will suggest amendments and I hope that the right hon. Gentleman will maintain his equanimity when they are considered.
I want briefly to maintain my criticism of Clause 6. I criticised it when it was foolishly introduced by the Conservative Government last February, and it is equally foolish to maintain the clause now although I understand the doctrinal reasons why the present Government want to give these powers to the Housing Corporation. But they are wrong, and it will not assist the housing programme.
The problem of housing associations needs urgent attention. The financial provisions of the Bill do not go far enough. I say this in no party sense. Just as they laid orders freezing rents, the Government should lay an order in the next few days at least to permit housing associations to pass on their increased service charges. These non-profit-making bodies do a good job and they are losing tens of thousands of pounds a year because of this policy. It is only from their surpluses that they can improve older properties. One housing association which has provided about 400 flats will build no more because it cannot afford to do so as a result of the freezing orders. I am not criticising the Government's intentions—that is a different issue—but I do not believe that they assessed the effect on housing associations.
Before the Housing and Planning Bill was discussed in February, there were consultations between the Department, the GLC and the London Boroughs Association about the overriding powers to be given to the GLC to operate in housing action areas. I am glad to say that good sense prevailed and that Clause 46, I think, of our Bill made it clear that the borough could not be overridden. I was sorry that the Secretary of State should confirm, in answer to an intervention of mine, not only that this pernicious provision has reappeared but that it has now been extended to general improvement areas.
This will not do. I am authorised to say on behalf of the London Boroughs Association, which is Labour-controlled, that it wants this provision fought. It does not believe it to be in the interests of good local government in London that the GLC should be able to act as a "big brother". This is the traditional view of the London boroughs whenever they have been in concert, whether both the association and the GLC have been Labour controlled, both have been Conservative controlled or each party has controlled one. I hope that the Under-Secretary will tell his right hon. Friend that it is the unanimous wish of the LBA that the Bill should be amended in this way. In a dispute between borough and GLC the borough's will must prevail. I hope that this is one of the amendments that the Secretary of State will table. If not, we may have to help him.
I acknowledge my gratitude to my right hon. and learned Friend the Member for Hexham (Mr. Rippon) for the two clauses dealing with service charges in the Housing and Planning Bill and to the Secretary of State for retaining them. I also thank my right hon. Friend the Member for Finchley (Mrs. Thatcher) for her kind words. However, I am afraid that, just as the clauses in the previous Bill, would not do, nor, I believe, will this provision do. Again I speak in no party sense. I fought my own Government and I will fight this Government in the interests of tenants.
Two unpleasant features are creeping into service charges. The first is the emergence of a new type of Key Flat, not the old reputable kind but a situation in which a company masquerades as reputable but is in fact the front for various Freshwater-type organisations. I have said this before and I shall say it again. Quite legally—I emphasise that—solicitors are refusing to supply information to tenants about audited service charges because the leases are so drawn that it is not necessary for the information to be supplied. They will not even supply it voluntarily. I hope that the Minister will be sympathetic to any amendments that I might table to give tenants a complete right to have the audited service charges for which they ask. No one should be able to shelter behind even a very thin screen of law.
But even worse, another object is coming out from under the stones. A property company called Regalian Securities operates at the moment in St. Marylebone and Hornsey. I have the permission of my hon. Friend the Member for St. Marylebone (Mr. Baker) to mention the case of 29, Abercorn Place, where some of the most unpleasant things have been happening.
In a block of flats at that address, some people have bought their flats and others have leases. The managing agents, who, so far as I know, are perfectly reputable, are late in supplying information because they cannot get it from Regalian. The agents make statements to the tenants and then find that they are forced to withdraw those statements because their clients, the owners, will not allow them to keep their word. Perhaps that sort of estate agent should decide that he did not want to manage for that sort of owner. None the less, these tactics are extremely unpleasant. They lead me to suggest that we need to go much wider than the Bill goes on service charges.
In Clause 104 a tenant is given the right to challenge in the High Court or the county court the reasonableness of service charges. But tenants tell me that they are fighting with one hand tied behind their back. They cannot afford the high-powered lawyers which some of these shady property companies are employing, and they cannot afford the expense of going to the High Court. They know that at present, win or lose, the costs will be added to their service charge bill.
The Minister has the services of expert draftsmen. Back benchers are mere amateurs in drafting. Perhaps the Minister could assist in framing an amendment which would make it clear that if a landlord decided to appeal beyond the county court, he should be able to recover his costs by way of spreading them out over service charges only if he wins the appeal and if the court decides that the tenants have been frivolous in their appeal. Otherwise, I fear that there is a grave danger that, well-intentioned though the clause is, it will not help many tenants.
I should have liked to see the right of appeal end at the county court and not at the High Court. I toyed with the idea that it might end at the small claims court, but that may not be a practical proposition. I should like to see two proposals implemented. I should like to see landlords or agents forced to obtain competitive estimates for any job that would cost more than £250—one of the estimates, at least, to be from a firm in which the landlord had no interest. In the schedule which deals with service charges I notice that a firm of accountants which is employed to draw up the accounts for the purposes of the audit must not be connected with the owner or with the subsidiary company in any way. Therefore, I should like to see one of the competitive estimates coming from a firm that is completely independent.
Equally—this brings me back to the sort of case that I have had put to me at Abercorn Place or at Embassy House in my constituency—if work is to be done exceeding in cost, for example, £2,000, there should be discussion first with the tenants' association. The owner of Embassy Court refuses to recognise such a thing as a tenants' association. Perhaps he will have to be shown that we are living in 1974 and not in 1954. I want to see advance consultation with tenants' associations where large items of expenditure are involved.
I hope that the Minister will agree that I have not so far been party political or controversial. I hope that in his usual pleasant manlier he will take that fact on board and try to persuade his Department on this matter. I have found his Department in the past not too helpful in matters of service charges. The Department required an enormous amount of persuasion and a defeat in the House before it was convinced that the House really wanted something done about service charges. I hope, therefore, the ground work having been done, that the Minister will find it easier to make the right sort of changes.
Clause 103 deals with the disclosure of the identity of landlords. It goes a long way towards satisfying those of us who have been pressing for this for a long time. I am open to correction, but do not think it gives an automatic right for the tenant to be told when the name of the landlord changes. There are frequent changes of ownership in my constituency. One of the organisations which is frequently complaining to me about this is the Fairhazel Tenants' Association. I should like to see an extra provision in the clause so that once a tenant asked for the name and address of the land-lord he should automatically be supplied with the new name and address whenever there was a change. I suggest a penalty of £200 if the information is not provided within, say, three months. This is necessary because, well intentioned as the clause is, it does not go far enough. I am not a lawyer but that is my reading of the clause.
The clause also appears to be defective. It appears to say that the only body which can institute proceedings in such cases would be a series of local authorities. I should have hoped that in addition the tenant would have the right to institute proceedings. There are some tenants who enjoy litigation and they should be given the right to start proceedings.
I agree with the hon. Member for Leeds, West about the inadequacy of Clauses 57 and 72 which give the figure for eligible expenditure as £2,000. That figure has remained unchanged for a long time. I am not certain that I agree with his figure of £3,000 because I should like to see the Minister empowered to vary it by order rather than requiring fresh legislation. Certainly £2,000 is not enough and £3,000 may cease to be enough before there is time to introduce a fresh Housing Bill.
There is no doubt that the Bill will help. It will provide assistance to people who wish to see a solution to the housing problem. However, it will not solve it and it should be put on the record that no piece of housing legislation since the war has gone anywhere towards achieving that. Those of us who have spent a lifetime in local government know the heartache of seeing waiting lists grow longer.
An equal heartache, which reinforces my earlier remarks about giving tenants the right to buy their own homes, is the stubborness with which local authorities refuse to operate a sensible transfer system for their tenants. Irrespective of political control, this is in most local authorities one of the biggest bureaucratic nonsenses and it takes a tough housing chairman to get over it. I am prepared to bet that within months of his setting up a scheme it is once more not working because it is snarled up somewhere along the line.
The Bill will make a modest contribution—and that is not to be taken as criticism of its predecessor, the Housing and Planning Bill, because that, too, would have made a modest contribution. What we must not do is to try to find purely political solutions to the housing problem. They do not exist. It may well be that we shall need to be much firmer and try to take out of politics much of the mechanism of local authority housing.
As local authorities amass more and more properties and fail to carry out maintenance quickly enough for the tenants—and I suppose blame can be attached in large measure to many councillors who either do not do their job or who get bypassed by the tenant—as they make it more and more difficult for people to get a transfer and as local authorities get so much property that they start increasing their staff, we may have to consider whether local authorities should keep all their properties under their own control or whether they should be charged only with the responsibility of building new property. Of course, none of the factors that I have mentioned helps the person on the housing list.
We must consider whether local authorities which have built new property should be required to pass much of it over to a body such as the Housing Corporation or some other body that could be run by a local authority and not a national government consortium. In any event, housing should be taken out of the sphere of influence of individual local authorities. That is one matter that needs to be considered. It may well be that the powers given by the Bill to the Housing Corporation will not be sufficient. I suggest that the Minister should consider that matter.
I have an idea that we shall have an interesting Committee stage, and it is certain that we shall have a Report stage.
8.48 p.m.
Of all the problems that are brought to hon. Members I am sure that the greatest proportion relate in some way to housing. I join the general welcome for the Bill. There are some matters that give concern and they call for clarification. I shall be grateful for any assurances that can be given.
Clause 1 gives wide powers to the Housing Corporation, but the position of the local authorities to co-ordinate activities is not clear. That argument applies especially to the relationship between the corporation and the Department of the Environment. Local authority housing is very much subject to financial control by means of the yardstick. We all have unhappy experiences relating to that. There does not appear to be similar control over the Housing Corporation.
I now turn to Part IV and housing action areas. The Bill provides that when determining whether an area should be declared a housing action area both the physical and the social conditions should be taken into account. That would appear to exclude any areas of municipal housing from being designated as housing action areas. Additional criteria on which to base such decisions may vary from case to case. They are not detailed in the Bill. I hope that this matter will be considered by the Secretary of State. He should be in a position to give guidance from the outside to individual local authorities which have special problems.
The number of houses in Coventry due for demolition is minimal—namely, 2,000 houses. Coventry's problem is to safeguard the future situation. In Coventry there are approximately 20,000 houses that were built prior to 1919 and need repair and improvement.
I agree with my hon. Friend the Member for Leeds, West (Mr. Dean) that much of the problem arises because there has not been a policy of housing provision and maintenance. It is a fact that the varying quality of the houses in Coventry will make it certain that the local authority will not defer work. Repair and improvement should be ongoing if we are not to get into a situation in which all authorities have to reach the same level before the authorities that happen to be in a better situation are allowed to carry out any work.
To put it another way, the degree of deprivation may appear to be less in Coventry than it is elsewhere but it is nevertheless a great deal. This need can be met in some measure by housing action area provision. If local authorities like that of Coventry are not to be permitted their share of housing action areas, the effect will be to retard progress until all local authorities are in the same position, and this could have serious repercussions locally and nationally. I hope that authorities like Coventry will be able to be given their share.
The limit of £2,000 may have been perfectly all right when it was first introduced, but it is unrealistic now. I cannot agree that £3,000 is too much. It is a minimal figure to aim at.
As for Clause 79, local authorities are in difficulties when they want to carry out improvement work on a house and have to decant the existing tenant. Unless the house to be improved is in a general improvement area, the local authority is asking the tenant to bear a double rent burden. This makes it almost impossible. I therefore urge that consideration be given to granting rent-free accommodation during the time that local authorities have to decant tenants into other property whilst improving the first property. This would undoubtedly enable authorities to get on with their work and alleviate the present delay.
I speak from a long experience in local government when I say that this Bill will make a contribution to housing. It certainly is not the solution, but at this time all contributions to housing will be welcomed and we should be grateful for them.
8.53 p.m.
It has been said that this is an unusual Parliament. Certainly this has been a very unusual debate: I do not recall any previous housing debate that evoked so little interest. Normally, housing debates are debates of great heat and occasion. This has been an extremely tame affair. Perhaps that is understandable when the odd circumstance is remembered that the Government are introducing a Bill that belongs to the Opposition. The Opposition are having to probe their own instrument. This has caused difficulties for many speakers in the debate, as they have acknowledged.
Two speakers for whom it has not caused difficulty are my hon. Friends the Members for Romford (Mr. Neubert) and for Bexleyheath (Mr. Townsend), both of whom made excellent maiden speeches, which were light and amusing, yet at the same time showed great depth of thought and concern for housing problems. I hope the House will note the many interesting suggestions they made, and I trust that we shall hear from them on many future occasions on this and other subjects.
One speaker who was in great difficulty was the Secretary of State, who introduced the Bill. He was so unkind when he spoke from this Dispatch Box in opposition to the earlier Bill which he described as a retreat, a disappointment and a missed opportunity. Yet today he introduced a virtually identical Bill. My right hon. Friend the Member for Finchley (Mrs. Thatcher) was kind enough to tell the House that I took the trouble of going through the Bill and comparing it word for word and line for line with the Housing and Planning Bill which we introduced in the last Parliament. I made marks in red, and in flicking over the pages of the present Bill I see that page after page after page is unscored and unmarked, and what markings there are do not amount to much.
The excuse has been made that the Government have not had much time to do much about the matter, but, as my right hon. Friend pointed out, another Secretary of State has been able to bring forward a great measure, altering previous legislation.
Could it be that the Secretary of State finds, now that he holds office and has the benefit of the advice of officials, that his earlier criticisms are no longer valid?
I find it difficult to follow his suggestion that one of the great improvements which he is to bring forward is the direction of greater resources under the Bill, for, as we have seen, we are £4 million short on the last Bill—because, we are told, some proposals for improvement grants for Scotland will be taken out. The Secretary of State has said that he is bringing forward a greater direction of resources, yet all he is doing is providing less money by this Bill, and then bringing in another Bill to make the money up.
Has not the hon. Gentleman read Circular 70/74 in which £350 million is allocated? Will the hon. Gentleman not honour the House by giving a little more realistic information?
I will come to that matter in a moment, because I have something to say about municipalisation.
The strictures in the previous Second Reading debate about lack of resources for house improvements and housing action areas do not stand up when we see what little difference there is between the present Bill and the previous Bill, but the Secretary of State prides himself on doing two things which are not contained in the Bill at all.
One is the security of tenure for furnished lettings. I must say at once that the Opposition have reservations about the validity of that policy. We saw in the past—and the Milner Holland Report spelled this out quite well—that too rigid a control of unfurnished accommodation led to the disappearance of unfurnished privately rented accommodation from the market. In the Francis Report, the same "solemn warning"—to quote it—is made, that if we tamper with security of tenure for furnished lettings we run the danger of making that pool of accommodation disappear from the market.
I had a specific instance of this quite recently when canvassing in my constituency. I found a man occupying an enormous house almost by himself. He told me that it had been filled with furnished tenants. The moment he heard of the Labour Party's proposals he started to take steps to get those furnished tenants to go. He had only one furnished tenant left in the house, and he was shortly to go. The owner told me that he was anxious to have tenants in the house because they helped with his mortgage. However, he foresaw that the day was coming in three to five years when he would wish to retire, to leave London and to sell his house. He wanted a capital sum sufficient for him to buy a house at the seaside and to provide himself with a little investment money. He felt that if security of tenure were given to all his tenants he would not be able to do so. There must be many people in the Greater London area who find themselves in that position.
What did the hon. Gentleman say to that man? Did he say "That is exactly why you should not vote Labour"? Or did he say, as he should have said, that the Labour Party had no intention of taking that man's right to get rid of tenants living in his house with him?
It was a bit late in the day as he had got rid of virtually all of them. However, I said that I understood that there might be some provision about tenants living in the same house as the owner-occupier, but that it had not been made clear and we were still awaiting the legislation to spell that out and that we should like to look at it in great detail.
The hon. Member for Islington, South and Finsbury (Mr. Cunningham) will undoubtedly have read with interest, as have, "Priorities for Housing Action", the report by Shelter. It relates to another part of Islington which borders my constituency and which is, therefore, of particular interest to me. It describes a group of houses as one of the worst examples of sub-standard multi-occupied housing in London, Burnam Road, and yet says that despite that there is no overall shortage of rooms within the area. It says:
From what I have seen and from discussing such cases as the one I have just mentioned, as well as reading reports and knowing of the experience of many people in housing, it is clear to me that there would be available today a vastly larger pool of rented accommodation which would go a long way towards solving the housing problem in our main cities were it not for the dead hand that control has had and continues to have on such property.
The Rent Act 1967 created the reverse not?
No. The hon. Gentleman exaggerates. I refer him to the Milner Holland Report, where the matter is discussed in great detail. He will find quite different conclusions reached.
Do I understand from the hon. Gentleman that greater freedom for private landlords is to be the objective of the Conservative Party? This is the second time today that an Opposition Front Bench spokesman has given that indication. If that be so, it is extremely alarming, because we know from experience of the Rent Act 1957 that the effect of increased freedom was a great diminution of private housing available for rent. If the hon. Gentleman is in fact suggesting that what is needed is greater freedom it is desirable that his party should spell it out.
The analysis of the situation which I have given is held by many people. Of course, one could not take away control just like that, because to do so would cause much unsettlement and great hardship. which one would not wish to see, but what one would like is to be able to say to people who now hold these stocks of unused accommodation that a measure will be introduced so that, if new lettings now take place in that accommodation which is not being used, they will not be subject to security of tenure. We on this side believe that that would bring a good deal of rented property into the market.
So that is what the hon. Gentleman is saying.
A great deal of the problem which has bedevilled housing has been due to the poor financial return which landlords have been able to obtain from their properties in the past under the old control. Now, since the Housing Finance Act 1972, with a movement towards fair rents coupled with generous rent rebates, we could begin to arrive at a state of affairs in which a landlord could be assured of a reasonable rent from his property—not all that he would like, and in some circumstances. certainly in relation to new construction, nowhere near the economic rent, but, nevertheless, a return much better than he has been able to enjoy in the past; and, at the same time, no tenant would be in accommodation for which he could not afford to pay, because of the rebates available to him.
Immediately we arrive at that situation——
I hope that we never do.
—a fundamental cause for landlord and tenant disputes disappears, for the tenant is able to pay his rent without worry because of the subsidies available to him, and the landlord is receiving a fair rent. These are the policies that the Conservatives have evolved, and we believe that, given time, they will work and help to solve the housing problem.
On that basis will the hon. Gentleman say why landlords choose not to let houses which are completely empty or have one last remaining tenant, and which could be occupied by new tenants paying fair rents?
That is because of the legislative proposals and threats of the Labour Party. That is the simple answer, and if the hon. Gentleman takes the trouble to find out he will see that it is the true answer.
Does the hon. Gentleman realise that a move towards the housing policy he now advocates launched in London one of the most vulgar phenomena we have ever experienced—Rachmanism, which has come to mean "disgusting"? That was born out of Tory legislation.
I disagree entirely. No one would countenance the activities of any landlord such as Rachman. I welcome legislation that penalises harassment, and I should like to see the penalties as high as they can be made, but we must remember that the Rachman situation stems directly from control and shortage. Eliminate the shortage and there is no room for Rachmanism. There is nothing on which landlords of that type can operate.
The Secretary of State said something which I found of great interest, and I made a note of his remark. He said that the large majority of people of this country are in satisfactory housing today but there is a minority who are not. That phrase contains echoes of what Mr. Kenneth Robinson said some years ago when he was Minister of Housing. He said that by the mid-1970s there would be no housing shortage in this country. He was ridiculed at that time for that statement, but it is not very different from what the right hon. Gentleman said.
There is a paradox. If one takes the total amount of housing accommodation in the country as a whole and compares it with the total number of households one starts to get in balance, but in the great conurbations of London, Manchester, Birmingham and Glasgow there are dire and desperate housing conditions. Houses have been built in places where they are not required. That adds point to what my hon. Friend the Member for Romford said about there being too much emphasis on new housing.
I am glad that in the debate we have not spent a great deal of time on housing statistics—how many houses the Tories built and how many the Labour Party built. If we were to do that, the Conservative Party would come out best by a long way. As my right hon. and learned Friend the Member for Hexham (Mr. Rippon) has said in the past, the record of the Conservative Party is better by half a million houses, if one takes new houses and improvements together. than the figure achieved by Labour.
This is an important matter if one considers the housing problem to be in the inner cities, because that is where the real problem exists. It is what the Bill is about, and this is why the Secretary of State is advocating the Bill. The heart of the legislation lies in housing action areas in helping to solve the problem at the centre of cities where real housing stress exists. This was why the Conservative Government brought their Bill forward, and it is why the Labour Government in turn have introduced their Bill in this Parliament, changing the legislation very little in the process. Although the present Secretary of State for the Environment said in February of this year that he did not like our concept of housing action areas, nevertheless he has introduced them again in his Bill.
I turn to the point raised by my hon. Friend the Member for Hampstead (Mr. Finsberg) on the power given to the Greater London Council. This is a provision which we find objectionable. The Secretary of State talked about confrontation and said he was removing the power to give directions to local authorities in connection with housing associations. The right hon. Gentleman does not want confrontation, but what does he think will happen when this power is given to the Greater London Council? Will it do anything other than cause confrontation? My hon. Friend the Member for Hampstead said that there will be confrontation between the Greater London Council and the Labour-controlled London Boroughs Association. Therefore, I find it difficult to understand why the Secretary of State is on the one hand seeking to remove something because it will cause confrontation and yet on the other hand is introducing something that is even more objectionable and will cause confrontation.
My hon. Friend the Member for Hampstead also referred to service tenancies. I join him in his strictures, particularly in respect of Regalian. I have difficulties with that company in my constituency, and I urge the Secretary of State to take up my hon. Friend's point and to introduce the right of tenants' associations in these blocks of flats to consult with landlords before work is undertaken. It is not sufficient to say after the money has been spent that one can challenge it either as to quantum or quality, because once the money has been spent it is difficult even for a county court judge to deal with the situation. There should be a prior right to deal with the matter.
Another matter which has not attracted much attention in this debate is the subject of hostel accommodation. A great deal of the growing housing problem, particularly in the London area, is connected with the plight of single homeless people. Not enough accommodation has been provided for them. There is also the situation in which young people are paying extremely high rents for flats which families could not afford to pay, but doing so on a sharing basis. As a result, families are denied family accommodation by a lot of young people clubbing together in that way. Adequate hostel accommodation could help to meet that situation and release accommodation for families. We welcome this proposal in the Bill.
One matter which I find very difficult to understand—but we shall hear in a moment—is why there are amendments which have not yet been revealed to us but to which the Under-Secretary will address himself. The Opposition protest that this announcement was not made earlier so that we could have an opportunity to think about it and to probe and discuss. That opportunity is denied us inevitably by the eleventh hour statement that is about to be made. We deplore that kind of manoeuvre. I hope that this is the last occasion on which the Secretary of State treats the House in this fashion. If there is some detail about which the House should know, we should be told at the beginning of the debate so that it may be discussed fully. We are denied that opportunity, and it is to be regretted.
In part we have been discussing the London position. The Under-Secretary informed me in answer to a Written Question that the total dwelling stock in the Greater London area had increased by 80,000 between 1969 and 1973 and that the number of families on housing waiting lists at the same time had gone up by 20,000 but that over the same period the total number of households in the Greater London area had declined by 100,000. This is a point which my hon. Friend the Member for Romford (Mr. Neubert) made earlier when he spoke about London's declining population.
We have the situation that between 1969 and 1973 100,000 families went out of London and 80,000 more dwellings were built, yet apparently the housing lists increased and there was a greater housing problem. There seems to be no logical connection between those statistics unless it is caused by the break-up of families and by more single people looking for accommodation.
indicated assent .
I take it from the right hon. Gentleman's nod of assent that this is part of the problem at least. It therefore indicates the need for even greater emphasis on the hostel accommodation which I mentioned earlier.
There is another aspect which I should like the right hon. Gentleman to bear in mind. In the past couple of months my own local authority has carried out a review of its housing list by circulating all those whose names were on the list and had come on to it since 1969. Before carrying out this exercise Haringey had a list of about 11,500. Subsequent to the review the list is just on the 7,000 mark. That is a tremendou reduction.
If any reliance is being placed on the housing waiting lists of local authorities to assess the size of the housing problem and, therefore, what new accommodation has to be built, it seems clear that at a fairly early date the housing lists of all local authorities must be looked at in that fashion. If there is an immediate statistical reduction of between 30 and 40 per cent. because families have either rehoused themselves or gone out of London to new towns and no longer need to be on housing lists but remain there purely because of administrative delays in making follow-ups, it would be worth while to have the situation corrected so that we might know more accurately what is the problem in London. This could be repeated throughout our great cities where the real housing problem exists. We want accurate information to find the remedy to the problem.
The hon. Gentleman's argument is that the housing need is being exaggerated. Both sets of figures that he gave are meaningless, as they are in most authorities, because in areas like mine people know that unless they live in the one area of slums selected as being given priority, or are practically dying on their feet from tuberculosis, they have no chance of getting a house. Therefore, whether they apply to go on the waiting list or not makes no difference. That is why these figures are meaningless. It is wrong to use this argument to suggest that the housing need is not as great as it would seem.
I am not suggesting that the housing need is not as great as it would seem. I accept immediately that some people are not on housing waiting lists because they do not fulfil the criteria laid down by a particular authority for its points system, but local authorities in planning the accommodation they want to build, in planning their clearance areas, in planning their acquisition of new property and in making arrangements with new towns, have close regard to their housing waiting lists. They use their housing waiting lists as the basis for the programme that they wish to bring forward. In terms, they always say "There are 10,000 people on the housing list. Therefore we must build so many houses". Perhaps that is not so in Salford, but it is in other parts of the country. I am suggesting that there is a need for more accurate statistical information than we have at the moment.
Finally, I hope that the Minister will ensure that London's dockland is declared a housing action area. I hope that those 5,500 acres will be built on as quickly as possible and that building will not be delayed further by the squabbling that is going on between the local authorities concerned as to which will get the greatest rateable value out of it. That is the real disgrace about London's housing. Many of our problems could disappear overnight if those 5,500 acres were properly used and the 2,000 acres of dubious green belt were also utilised. It is there that we could provide housing for the people of this great metropolis.
9.28 p.m.
I join other hon. Members in congratulating the hon. Members for Romford (Mr. Neubert) and Bexleyheath (Mr. Townsend) on their maiden speeches.
The hon. Member for Romford made a speech which was both graceful and unduly modest. We look forward to hearing him again and greatly value the comments that he made about our colleague Dick Leonard whom we greatly miss and look forward to seeing back here for Romford or for somewhere else.
It would appear that the hon. Member for Bexleyheath, as well as having a great deal of information about housing at his disposal, will be able to contribute to the amusement of the House. We valued both his wisdom and his humour. He, too, paid tribute to the Member whom he succeeded—in this instance, the Leader of the Opposition. The hon. Gentleman is not to blame if at times his panegyric sounded like an obituary.
I thank the right hon. Lady the Member for Finchley (Mrs. Thatcher) for her kind words about myself, and I know that the House will share both her regret and mine that my hon. Friend the Minister for Housing and Construction is too unwell to be here to wind up the debate. The House will be aware that my hon. Friend played a major part in the preparation of the Bill. He cares passionately about this subject. It is a great deprivation for him not to be able to speak in this debate, but it is an even greater deprivation for the House that it is unable to benefit from his immense knowledge of the subject and his even greater concern.
I should like to declare my own interest in the matter that we are debating tonight, which is that if the Bill when enacted works as it should, my constituency of Ardwick will benefit from its provisions. When the previous Bill was introduced in February I welcomed it, but I also criticised it. I used the very phrase which the hon. Member for Hornsey (Mr. Rossi) attributed to my right hon. Friend the Secretary of State. I said that it was a missed opportunity, and I do not withdraw what I said then.
The Bill as we have introduced it tonight is already an improvement on the previous measure, but I am the first to say that it is still open to criticism as an incomplete measure. Basically, though far from totally, as the hon. Members for Bodmin (Mr. Tyler) and Caernarvon (Mr. Wigley) would point out if I did not, it is aimed at dealing with the problems of the inner cities, and those problems are immense and often disheartening. The problems coagulate around bad housing and bad landlords, and my hon. Friend the Member for Islington, South and Finsbury (Mr. Cunningham) is not totally amiss when he draws the attention of the House to the bad landlords who abound in the inner cities and other areas.
The problems of the inner cities revolve, too, around an environment which offers no hope to the people who have to live in it, who have to live among vacant crofts and spaces bespattered with rubbish and reeking of health hazards, who are surrounded by noise and a lack of amenity, whose children have too few play spaces—and a lack of play spaces which sometimes lead to the tragic deaths of small children who try to create their own adventure playgrounds by crawling over railway lines and getting drowned in clay pits—who suffer from infestations of vermin, who week after week and month after month have no sight of anything that is green, soft or attractive, and who can be said to live under the sign "Surrender hope all ye who enter here".
My right hon. Friend and my hon. Friend were right when, on the last occasion, they said that a total approach is needed to provide an environment that will ensure that there is for these people in the inner cities and elsewhere the ability and the opportunity to grasp educational and job chances without which they cannot grow up and be able to live the kind of lives that are lived in the suburbs and many other parts of the country.
That total approach was missing from the Housing and Planning Bill, and that is why we criticised it then, despite its undoubted merits. As my right hon. Friend said, we should have liked to make a completely fresh appraisal of this entire problem and to bring in a totally new Bill, but the choice was between that, which would have involved a delay of many months if not longer, and introducing the original Housing and Planning Bill with some changes and bringing in along the way certain amendments that will make changes to it, some of them fundamental.
I thought it a little churlish of the hon. Member for Hornsey to rebuke us for not announcing all our amendments today. I should have thought that it was a courtesy to foreshadow these amendments at all. Other Governments, including Conservative Governments, have introduced amendments later without forshadowing them on Second Reading. We are busy drafting those amendments now. It ill becomes him to rebuke us for letting the House know as much about them as we can and to say that the Secretary of State, who had the Bill to recount, should also have taken up a good deal of time by dealing with the proposed amendments. If the House does not wish to listen to our amendments, I can miss out that section of my speech.
The hon. Member said that I was complaining that the Government had not announced in this debate what amendments they propose to make in Committee. I obviously was not doing that. I was calling the Secretary of State to task—rightly, I believe, and I would do so on another occasion—for saying to the House, "There are changes that we shall make to the Bill which I will not tell you now but which you will hear at the end of the debate when you will not be able to discuss them."
I am sure that my right hon. Friend, who is notorious as an indifferent orator, will value the hon. Member's advice on how to construct his speeches. As I say, we shall introduce some amendments in Committee and the final Bill will be a great improvement on that which the House has been debating today. But I will not conceal that it will still not meet in full our ideals and aspirations. We shall have to come back to this subject again in the life of this Parliament, the next Parliament or some other Parliament in the series in which this party will have a majority. In doing so, we shall take full account of the views of the House as well as of local authorities, housing societies and other organisations.
In the longer term, the Government will also be seeking to apply the lessons of the Six Towns Studies and the work done on Guidelines to Urban Management. We shall also want to draw on the experience of the Shelter Neighbourhood Action Project in the Granby ward of Liverpool. All this work demonstrates the importance of improving and coordinating action on the selective policies we have on social provision in areas of stress. Nowhere is the need for a comprehensive and co-ordinated approach more evident than in urban renewal. This remains, despite steady progress over the past several years, an enormous challenge. Meanwhile, as my right hon. Friend said, we have prepared these amendments, which will strengthen the Bill and widen its scope.
I hope that the House will forgive me if I do not cover all the points raised. The hon. Member for Hampstead (Mr. Finsberg) said that we were certain to have a Report stage. If I were to cover everything which has been said in the debate, we should have the Committee stage now.
The hon. Member for Hornsey, somewhat to my surprise although not totally to my disappointment, expressed apprehension about the security-of-tenure legislation. One of the reasons why the Bill is not in the complete form that we could have wished is that this Department has a number of Bills in preparation in tandem. That on security of tenure is one of them, which is why we could not single-mindedly devote our drafting resources to this Bill alone. and that is why it is incomplete.
We have been trying, among other things, to work out safeguards for owner-occupiers, to whom the hon. Gentleman drew attention. While accepting what he says about owner-occupiers' problems, I would point out that he gave us a good example in the constituent he mentioned of a landlord who behaves capriciously towards his tenants.
The right hon. Member for Finchley, in her exordium before she came to the points of substance with which I shall try to deal, was trying to exhort us to build fewer council houses. I shall have to dissatisfy her. We cannot accept that recommendation. I was also a little surprised to hear her rebuke, as it appeared to us, about the reduction in the extent in the private sector of unfurnished dwellings which she implied took place more under Labour Governments than under Conservative Governments.
It is a fact that the percentage decline in unfurnished private landlord dwellings has been progressively greater under a Conservative Government than under a Labour Government. From 1951 to 1956 it was 2 per cent. per annum. From 1956 to 1961 it was 2½ per cent. From 1961 to 1965 it was 3 per cent., gradually rising under the Conservatives. Then, in roughly the period of the previous Labour Government, from 1965 to 1969, it stabilised at 3 per cent. In the following period, taking up most of the period of office of the previous Government, from 1969 to 1973, it jumped to about 4 per cent. The current rate is probably about 5 per cent.—for which, I hope, the right hon. Lady will not hold us responsible. It is no wonder that it was the previous Government, in their White Paper, who said that the decline in the private rented sector was irreversible. They were able to do nothing to reverse it. Indeed, it speeded up under them.
The right hon. Lady expressed apprehension about Clause 6. I was a little surprised about that. As her hon. Friend the Member for Hornsey, who is well acquainted with the contents of the Bill, will know, Clause 6 is identical in wording with the Clause 6 as it was in the previous Bill. It looks exactly the same, except that in the printing of our Bill we have been able to save a line through closer printing.
I am well aware, and the hon. Gentleman will remember, that my hon. Friend the Member for Southend, West (Mr. Channon) said that he too was having doubts about the very clause that he had introduced. I am reinforcing those doubts in no uncertain way.
That was after the jocular intervention of my right hon. Friend the Secretary of State. The right hon. Lady is pointing out that the then Minister for Housing and Construction was expressing doubts on the Second Reading of his Bill, yet we are apparently not allowed to do that on the Second Reading of our Bill.
The right hon. Lady seemed to suggest that Clause 6, which empowers the Housing Corporation to acquire the securities of any corporate bodies, is open to abuse in that it could be a device for nationalising the construction industry. That is an attractive thought, but I should like to think that if the construction industry were to be nationalised we would find a more effective way of doing it. But as it is, there are some built-in safeguards. The financial limits to be imposed on the corporation by Clause 7, a limit of £400 million or such greater amount not exceeding £750 million as the House may approve following the laying of an order, clearly do not give much room for the corporation to acquire securities, given that its task is to lend to housing associations; and as a subsidiary of the corporation may carry out only the activities that the parent body is empowered to do, the scope for acquisitions is narrow. The provisions of the clause are common to public authorities and nationalised industries. Their presence is not in the least sinister. Without such powers as are proposed in Clause 6, circumscribed as they are, the legitimate interests of the corporation, for example, to foster a consortium of housing associations or to raise private finance, could be seriously damaged.
The right hon. Member for Finchley also asked about what we were doing to assist housing associations in their undoubted difficulties following the introduction of the rent freeze. Paragraphs 12 and 13 of Schedule 10 propose to slow down the rate of withdrawal of subsidies from housing associations under the Housing Finance Act, and this will be worth at least £1 million to housing associations in 1974–75. This represents some compensation to them for the loss of rental income. My right hon. Friend is keeping the situation under review to see whether it may be possible or desirable to go even further.
My hon. Friend the Member for Salford, East (Mr. Allaun) asked about compensation terms under municipalisation. I ask him to accept that this is something of which, in the light of what he has put to us, we obviously must take very great account. But within this limited measure that we are proposing today it is not as relevant as it will be when we get on to the large-scale municipalisation and we will have to look at the question very carefully indeed. I hope that my hon. Friend will accept that as an interim reply.
Certainly, as long as it is not taken as a precedent that the terms granted now should be equally generous later on.
I am sure that what my hon. Friend has said is now on the record. My hon. Friend the Member for Mitcham and Morden (Mr. Douglas-Mann) raised a number of points. He said that the grants conditions in Clause 67 should be made mandatory rather than kept in the present discretionary form. They will be made mandatory for all grants in housing action and controlled areas, which means that the level of furnished rents can be controlled. This fact, together with the security of tenure for such dwellings, will mean that little discernible advantage will remain to compel a landlord to switch a tenancy from unfurnished to furnished and I hope that that will comfort my hon. Friend.
I can assure him that we shall examine sympathetically the case from Camden to which he referred. There is no legal or administrative requirement that the Parker Morris standard should be reached after improvement. New building is a very different matter.
My hon. Friend the Member for South Shields (Mr. Blenkinsop) raised the question of the participation of tenants. There will be detailed and careful arrangements for consultation with residents both in housing action areas and general improvement areas, but it is considered inappropriate to lay down the procedure for that in legislation. These matters will be dealt with administratively. For example, one or the matters which will be taken into account by the Secretary of State when considering general improvement area declaration will be the adequacy of local authority proposals for further dialogues with residents as the scheme moves forward.
I hope that the House will forgive me if I do not now proceed with other points which have been made since I should like to deal with the amendments we are hoping to table. If I have time I shall return to points which have been raised and which I have not yet had the opportunity to answer. One of the most important and key amendments we shall introduce will deal with the situation of housing stress, which is not confined to prospective housing action areas.
It is essential in Greater London and the other Inner City areas to prevent housing stress from rippling over into areas adjoining housing action areas and it is necessary also to prevent landlords from anticipating the declaration of housing action areas and transferring the problem to neighbouring areas. We therefore intend to empower local authorities to designate additional areas in a new category the name of which we have not yet decided upon. It will be a category where special safeguards will be provided. These will be areas of housing stress or areas with a potential for general improvement. We shall provide two powers, the first being the wider power of acquisition by local authorities provided in Clause 41. The second will be the substitute we have worked out for the first refusal option to which my right hon. Friend drew attention, a system of notification of property transaction and notices to quit.
These new areas, the new safeguard areas as they may be called, would have to adjoin a housing action area or a general improvement area. The procedure for declaring them would be the same as for declaring a housing action area, including the provision for the Secretary of State to give guidance about identifying the areas and to rescind them where they are considered unreasonable. I trust that the right hon. Member for Finchley will accept that these new provisions will increase the flexibility which she so welcomed in her Government's Bill and in our Mark II Bill.
These proposals would pave the way for dealing with the inner cities on a wider basis, including the neighbourhood approach which so many hon. Members on both sides of the House have recommended as the right kind of approach. Further, we believe that the grant for external works provided for in Clauses 43 and 44 is too limited in scope and does not provided adequately for improving conditions in, as distinct from improving individual properties within, housing action areas.
We shall then propose to extend the grant so that expenditure of a capital nature designed to improve living conditions in housing action areas other than the provision, improvement and repair of housing will be eligible for assistance by local authorities. The aggregate Exchequer contribution in respect of the local authority's expenditure in giving such assistance in a housing action area would be one half of the expenditure up to a maximum, over the life of the area, of £50 times the number of all dwellings in the area, and not just those improved to an intermediate standard, which is what the Bill provides for at present.
We also propose to take a power to vary by order the sum of £50 not only generally but also for particular descriptions of authorities or areas. That will enable different treatment to be given to different regions. These alterations to the grant envisaged by the previous administration would help to widen the concept of housing action areas and make the treatment of such areas more relevant to the range of conditions which need to be tackled in areas of bad housing in different parts of England and Wales.
Further, we wish to steer local authorities towards a policy of improvement rather than clearance wherever it is possible and makes sense. My hon. Friend the Member for Leeds, West (Mr. Dean) rightly said that improvement is no substitute for clearance where clearance is necessary. What worries us in the Department of the Environment is that some authorities may regard clearance as necessary when it is not only unnecessary but harmful. Meanwhile, while clearance has to continue on any large scale, we believe that the clearance procedures must be as swift, just and flexible as possible. I know that my hon. Friend the Minister of State who is responsible for urban affairs cares greatly about this matter. In pursuing our objectives we shall bring forward proposals on three aspects of the clearance system.
With the ever-increasing emphasis on rehabilitation, more and more local authorities are directing their minds to improvement rather than to clearance. Some now want to improve houses that are already in the pipeline for clearance, only to find that once they have bought property under Part III of the Housing Act 1957 there is no legislative loophole and that they must clear the houses.
A particular difficulty arises in the case of buildings of architectural or historic interest. At present it is possible for an unfit house to be included in a Part III order that brings with it a statutory order to demolish, and subsequently for it to be included in a statutory list as worthy of preservation, which means that it can be demolished only with specific consent. That is an absurdity that has arisen in my constituency within the past few days.
We therefore propose that provision should be made for an authority to change its mind and to improve rather than demolish. That can be achieved by empowering authorities to make an order for confirmation by the Secretary of State releasing them from the requirement to demolish, and revoking the earlier compulsory purchase order when they are satisfied that owners will themselves rehabilitate. We shall be bringing forward proposals to that end.
Next, we propose to make certain changes to the system whereby if a house has been included in a Part III order requiring its demolition, the Secretary of State may direct the making of a well-maintained payment to the owner or tenant as appropriate. The present procedure results in some people who are entitled to receive a payment failing to do so.
The changes that we intend to make will have the effect of ensuring that such payments are made in all cases considered by the local authority to be justified without the individual owners or tenants first having to qualify. We propose to simplify clearance procedures. Where an owner of a group of individual houses is keen to arrange for demolition and to redevelop the site himself, and where the authority has no need to acquire the land for its own purposes, that will continue to be possible under Part II of the 1957 Act.
But we intend to repeal the provisions relating to clearance orders which require owners of unfit houses, following the declaration of a clearance area under the Housing Act 1957, to demolish their property while retaining ownership of the land. In 1972 clearance orders accounted for only 4 per cent. of houses cleared under Part III and each clearance order averaged only eight houses.
In future, where the properties concerned are not in multiple ownership it will generally be in the public interest that the authority should acquire the land so as to secure speedy and systematic clearance, subsequently putting the site to good public use or disposing of it for redevelopment. A collection of small unsightly cleared sites in multiple and in increasingly uncertain ownerships is no good to anyone. Therefore, in future only local authorities will be allowed to buy houses in Part III areas.
We hope that these changes will eliminate some of the worst excesses and exploitation of the present system. I will give two examples of the kinds of abuse which have continued under the present system and to which some of my hon. Friends, in particular my hon. Friends the Members for St. Pancras, North (Mr. Stallard) and for Islington, South and Finsbury have often drawn attention.
A recent study carried out by my Department has shown that in a representative sample of properties improved with the help of grants in inner London in the first quarter of 1972 about 65 per cent. of the original households had moved out either before or during the improvement, the vast majority of those affected being tenants. This situation cannot be tolerated, and the Bill takes steps to deal with it.
Again, I have recently heard of a case in London where a four-storey house in single ownership, with a rateable value of over £1,000 and which already had two bathrooms, two internal WCs and other modern amenities, was given the maximum grant towards an elaborate improvement scheme costing over £6,000 to enlarge the sitting room and to provide a children's playroom and a con-conservatory. Again, this is an intolerable misuse of public funds, and the Bill will stop it.
This Bill will advance us some way towards our goal of providing an opportunity of a decent life for those trapped in the psychological and environmental quagmire which inner cities are for hundreds of thousands of our fellow citizens who deserve something far better out of life, who deserve conditions of the kind which we have in the House—and if we have them, we ought not to be satisfied until all our constituents have them as well.
The Bill, an imperfect measure as we all acknowledge it to be, will advance us some way, and because of that we put it forward with modesty and no more. We are very conscious that it does not go nearly far enough. This administration will not rest until all our fellow citizens have the chance to realise the aspirations which they demand for themselves and which we, too, demand on their behalf.
Question put and agreed to .
Bill accordingly read a Second time .
Bill committed to a Standing Committee pursuant to Standing Order No. 40 (Committal of Bills) .
Housing [Money]
Queen's Recommendation having been signified—
That, for the purposes of any Act of the present Session to extend the functions of the Housing Corporation and to provide for the registration of, and the giving of financial assistance to, certain housing associations, to make further provision in relation to areas in which living conditions are unsatisfactory or otherwise in need of improvement, to provide for the making of grants towards the improvement, repair and provision of housing accommodation and for the compulsory improvement of such accommodation, to amend the law relating to assistance for house purchase and improvement and expenditure in connection with the provision and improvement of housing accommodation and of hostels and to amend the Housing Finance Act 1972, it is expedient to authorise—
House of Commons Members' Fund
That one-tenth of the sums deducted or set aside in the current year from the salaries of Members of Parliament under section one of the House of Commons Members' Fund Act 1939, and one-tenth of the contribution determined by the Treasury for the current year under section one of the House of Commons Members' Fund Act 1957, be appropriated for the purposes of section four of the House of Commons Members' Fund Act 1948.—[ Mr. Albert Roberts .]
Channel Tunnel Bill
That Mr. Bryan Davies be discharged from the Select Committee on the Channel Tunnel Bill and that Mr. Robin F. Cook be added to the Committee.—[ Mr. Walter Harrison .]
Privileges
That Mr. William Deedes and Mr. Angus Maude be discharged from the Committee of Privileges and that Mr. Edward Heath and Sir Peter Rawlinson be added to the Committee.—[ Mr. Walter Harrison .]
Adjournment
Motion made, and Question proposed , That this House do now adjourn.—[ Mr. Dormand .]
Water Charges (Wales)
9.59 p.m.
No subject causes greater concern in most parts of Wales than the question of increased water charges. Right hon. and hon. Members will recall that many of us predicted the difficulties that would arise when the Water Bill was going through the House last year. Unhappily, our words fell on deaf ears. With a lack of foresight and imagination unparalleled in recent history the last Conservative Government plunged us into a welter of reorganisation on three fronts at the same time.
It being Ten o'clock, the Motion for the Adjournment of the House lapsed, without Question put .
Motion made, and Question proposed , That this House do now adjourn.—[ Mr. Dormand .]
Those three fronts were local government, the health service and water services. All of this was against a background of economic crisis and of severe cuts in public expenditure. I feel sorry for the councillors and officials who are having to bear the brunt of the inevitable problems which have arisen. These changes should have been phased over a period of three years at least.
With other hon. Members I have raised this matter in debate and at Question Time on several occasions over the past few months, and I do not propose to go into too much detail again tonight. The increased charges levied by the Welsh National Water Development Authority in Anglesey and some other areas are, however, iniquitous.
Anglesey is worse hit than anywhere else, and no doubt I shall be forgiven if I deal specifically with my constituency. In 1973–74 the domestic water rate for flats and houses was 3·6p in the pound, but in 1974–75 it is 18·8p in the pound. For metered supplies, water cost 12·5p per thousand gallons in the last financial year in Anglesey and this year it costs 57p per thousand gallons.
I appreciate that it is possible to argue that there was a small subsidy from the Exchequer—here I may be anticipating what will be said in reply—and that all ratepayers in the county were faced with a charge of 4·25p as part of the general rate. Nevertheless, the total charge in respect of water payable by domestic ratepayers in the county was 7·85p—that is, 3·6p plus 4·25p—in the pound.
I have previously raised the matter of the error which was made in drafting the Local Government (Differential Precepting and Rating) Order 1974 as a result of which Anglesey pays an additional 3·08p in the differential county precept. This is because account was not taken of the fact that Anglesey County Council was a water undertaking. It was the only county council in the United Kingdom which was a water undertaking. I hope that my hon. Friend the Under-Secretary will comment on this and will make it plain that we shall be reimbursed for this overpayment in due course.
We are told that the new charges represent the true cost of water to the consumers—this is what has been said to the water undertakers in Wales—but let us look at the figures. In 1973–74 Anglesey's water cost £560,000 gross of the charge to rates and after deducting sundry income. We estimate that if the undertaking had remained the responsibility of the local authority the cost would have been £608,000 gross, but the Welsh National Water Development Authority is asking us to pay £830,000, an increase of £222,000. What are we paying this increase for? I should like my hon. Friend to apply his mind to this question. If it has to be tolerated, the differential provisions introduced for rating should apply to water charges.
It should not be overlooked that the sewerage charge levied by the authority in Anglesey requires a rate of 8·8p in the pound. This is included in the rate bill but it does not attract rate support grant, nor does it rank as rates for the purpose of determining rate rebates.
The effect of these increases in Anglesey and in other development areas in Wales at a time of sharp inflation is very discouraging. They affect the householder, as I have described. They affect agriculture, which is going through a difficult time. They will deter industry from expanding and from coming into the area, and in my constituency unemployment is running at the rate of 8 per cent. of the insured population.
I have received representations from several industrialists. I propose to read only one letter, because it represents the general view of industrialists towards the present position. It is a letter dated 2nd May and it has gone to the Welsh National Water Development Authority. It comes from Anglesey Knitting of Holyhead. It says:
I realise that the Government inherited this problem from their predecessors, but I ask my hon. Friend to deal with the following points. First, can he say what has transpired following the meeting between my right hon. and learned Friend the Secretary of State and Lord Brecon, the chairman of the authority? We have been told that a review is taking place. What will be the nature of that review? When shall we hear its results? This matter cannot be allowed to slide into oblivion, because the consequences of inaction are far too serious for us.
Secondly, we should be told the precise figures on which the authority arrived at its final conclusions. I had the impression that the figures produced were arbitrary figures and I shall need contrary statistical arguments to be persuaded to the contrary. To what extent have we in Wales been impoverished by the attachment of a large part of Mid-Wales to the Severn-Trent Authority? It happens that we in Wales are exporters of water. I make no complaint about that in principle provided that we receive some substantial benefit for it. If we are paying more for our water, we should also be charging more for it. Can my hon. Friend say what are the increases in the Severn-Trent area? This information is material. I think he will find that we are being sold down the river, or taken up the creek, and that is too much for any Welshman to swallow, if I may mix my metaphors.
Thirdly, can my hon. Friend say what advice he can give us on the industrial side? These charges have destroyed one of the major inducements to industry to come into the development areas of Wales. I know that my hon. Friend and his colleagues in the Government are anxious to help us to raise our economic standards. We are now going through a depressing period. Will the Secretary of State, who has the powers of direction, require the authority to investigate the feasibility of an all-Wales uniform charge? I am sure that this is worth considering. That principle operates in other matters, for example in electricity, and it could be applied to water without difficulty.
We are deeply worried about the effect of these charges in our development areas. We believe that the books of the authority should be opened to us, because without the books and without the statistics we are unable to say whether the charges are justified. At present there is a feeling of deep disquiet among hon. Members on both sides, and deep disquiet in the counties of Wales as a result of these increases. Real hardship of a far-reaching nature will be caused unless the Government tackle this problem urgently and ensure that a fair solution is reached. I therefore invite my hon. Friend to make a constructive response to my appeal.
rose ——
Order. I must again explain the custom of the House in regard to these Adournment debates. When an hon. Member wins a place in the Ballot or is selected by me, he has the Adjournment, he makes his speech, and the Minister replies. If any other hon. Member wishes to enter the debate, it must be only by the consent both of the hon. Member who has the Adjournment and of the Minister. In this case, the hon. Member for Brecon and Radnor (Mr. Roderick) has the consent of the right hon. Member whose Adjournment debate this is and of the Minister to speak, and any other hon Member may speak only if he has that same consent. This is an occasion when the custom of the House must prevail.
10.12 p.m.
I support what has been said by my right hon. Friend the Member for Anglesey (Mr. Hughes). We have both been very much concerned with this problem, and we have both received similar representations on the subject. Our hope is that the Water Act 1973 will be amended drastically in the coming year. We appreciate that our hon. Friend the Member for Merthy Tydfil (Mr. Rowlands) the Minister who is to reply, was a member of the Committee which dealt with this Act when it was a Bill and strenuously objected to its provisions in this respect. We now hope that he will use the same energy in amending the Act when the time arrives during the coming year.
It is almost incredible that water should cost the residents of a town such as Rhayader, a small town in mid-Wales, five times what is charged to the residents of Birmingham. The residents of Rhayader live beneath the dam which supplies the water to Birmingham 80 miles away. It is difficult to explain to them that the water which they receive should be five times as dear as the water which the residents of Birmingham receive. Whatever kind of logic one may produce, it is not understood in the area, and in such a situation emotion tends to take over.
I beg the Minister to do his best to ensure that we have a solution to this problem in the long term. The Welsh National Water Development Authority is not the most popular authority in Wales today. We have created a body which some people would think would be popular, a Welsh authority, but the Act has created an ugly duckling in that water in the Severn-Trent area is much cheaper. The Severn-Trent Water Authority encroaches on Wales in that Montgomery—the county that was—enjoys the benefits of the rates charged by the Severn-Trent authority. We ask the Minister to consider, as he did consider in opposition, that the Severn should be a part of the Welsh National Water Authority and not part of the Severn-Trent Water Authority. We would enjoy the privilege of an amendment to this effect.
I understand that the Welsh National Water Development Authority took over the estimates of the old water authorities and accepted them. The authority simply added up the estimates and produced a new water charge on that basis. Neither we nor the authority have sufficiently examined those estimates to see whether there is a possibility of pruning. In the changeover the authority has taken over all the exaggerated estimates without sufficient examination.
If the rate rebate scheme were applied to water and sewerage charges it would help considerably. Water and sewerage charges have been separate from the rate rebate scheme, and if they could be included it would be of great benefit. We find it offensive to have three items on our rate bills—first, the rates, then the sewerage charge and then the water charge. Yet the water and sewerage charges are based on the rateable value of the property in the same way as are the rates.
I ask my hon. Friend to look closely at this question. I agree with my right hon. Friend the Member for Anglesey that we have received representations from all quarters—industry, domestic consumers, agriculture and others. I know that some concession has been made on the metering charge, but we have a long way to go to satisfy the people in our area of Wales.
10.17 p.m.
I am most grateful to the right hon. Member for Anglesey (Mr. Hughes) and the Under-Secretary of State for permitting me to intervene in the debate and I shall do so very shortly.
I agree with much that has been said by the right hon. Member for Anglesey. I hope that the Minister in his reply will deal with the points I raise because they are of great concern to many people in my constituency and, I have no doubt, all over Wales. Water is a native product of ours, yet the charges have gone up far more in Wales than they have, for instance, in London and Merseyside. In answer to certain Questions I tabled last week I discovered that the average increase in Merseyside which, after all, gets its water from North Wales and presumably has to pay substantial bills for the maintenance of supply lines, has been appreciably less than 50 per cent. In London it is just over 50 per cent.
In various areas in Wales the average increase is very much greater. For example, in the county of Clwyd the increase in non-measured and measured supplies is 76 per cent. and 60 per cent. respectively. In the area which is of most concern to me, the West Denbighshire and West Flintshire unit of the new authority, the respective figures are 100 per cent. and 89 per cent. and in Wales as a whole the astronomical respective figures are 148 per cent. and 124 per cent.
This matter cannot be left as it is. These vast increases call for a stringent inquiry into the financial machinery of the Welsh National Water Development Authority and I hope that the Minister will assure us that that will be undertaken.
10.20 p.m.
As a result of my generosity this evening, I am left with only a few minutes to reply to a host of points. Therefore, if I miss one or two of them I hope that I shall not be thought guilty of intending any discourtesy to those who have spoken.
I find it in some ways a little ironic that I should be standing at the Government Dispatch Box responding to the serious criticisms which have been made about the level of water charges in Wales. I make no bones about reminding Conservative Members that I spent a great deal of time in the last year of the previous Parliament as a member of the Committee which considered the Water Bill. I sought then to bring to the then Conservative Government's attention the problems which would arise as a result of the provisions of that legislation. I drew attention to the fundamental difference between our philosophies concerning the way in which water and sewerage services should be paid for.
The Conservatives believe, as a matter of principle, that the revenues to enable the new authorities to discharge their functions should come from charges for the services they provide and that those charges should reflect the full cost of providing the services. There was a considerable redistribution of the burden on to the individual consumer. I believed at the time when the Conservative Government's Water Bill was going through the House that these services should be treated as such and paid for through general taxation as much as by a direct charge on the consumer.
However, I must say to my right hon. Friend the Member for Angelsey (Mr. Hughes) and to others who have taken part in this short debate that the Water Act was passed by the House and we must now see to it—albeit with some reluctance—that it works. I cannot, however, hold out the prospect of any major revision of the 1973 Water Act. I feel that we have already had a massive upheaval in local administration, in the health service and in the water services and it would be extremely impracticable to consider scrapping that piece of machinery. Therefore I cannot hold out any prospect of changing or altering the 1973 Water Act.
My right hon. Friend mentioned a number of specific points concerning Anglesey and the implementation of the Water Act and its charges. The authority was required to introduce a system that was self financing. It was also required by the previous administration to fix its charges by January of this year so that work could be undertaken to determine the appropriate levels of differential domestic rate relief which the Conservative Government proposed to introduce. Therefore, we had no opportunity to do anything about the charges in any specific way.
Having said that, I must point out that soon after coming to office my right hon. Friend the Secretary of State for Wales and I met Lord Brecon, the Chairman of the Welsh National Water Development Authority, to discuss what could be done to mitigate the effect of these charges within the confines and constraints of the Water Act. I shall be meeting Lord Brecon again in the very near future to discuss all the issues which have been raised. He has always expressed a willingness to go to any authority or area which has a complaint and to investigate more closely specific problems in the localities. I am sure that my right hon. Friend who has raised this important subject tonight, as well as other hon. Members who have spoken, will take the opportunity to go into this matter in some detail. For that reason I shall not go into the minutiae of the way in which estimates were prepared on any particular charge, but I hope that there will be opportunity to discuss with Lord Brecon the specific points raised by my right hon. Friend and others.
One of the tasks that Lord Brecon's authority will undertake is a close and critical scrutiny and review of the estimates which have been put to it by the former water and sewerage authorities. This review will be completed in time for the authority to consider a more rational basis for levying charges in the next financial year. This is the prospect or hope we have of considering changes in the light of experience of operation by the Welsh Water Authority this year in connection with the financial arrangements as they stand.
As for industry and agriculture mentioned by my right hon. Friend, it is true that charges have been considerable and users will have to pay the full costs of their water. They will have been helped in some areas by Lord Brecon's decision to recommend to the authority that no charge for metered water supplies should exceed 50p per thousand gallons. This was one of the measures that he felt he could introduce after he had discussed water charges with the Secretary of State and myself, and this will give some help to industrialists and farmers.
I know that for some concerns the cost of water is important, but for industry in general it forms only a part, and sometimes a small part, of total costs. For agriculture, the increased charges bite hard, particularly on dairy farming. The Government have promised that the effect of the increases will be taken into account in the next round of talks on the farm price review. This provides the farmers most affected with a crumb of comfort. We have tried to cushion the worst effects of the increased charges by the generous increase in rate relief grant, from which many authorities have benefited.
A point with which I sympathise and which has been raised repeatedly is the odious comparison between Welsh charges and charges in neighbouring English authorities. My hon. Friend the Member for Brecon and Radnor (Mr. Roderick) emphasised this in a recent supplementary question and also mentioned it tonight. Comparisons are bedevilled by historic accidents and costs—who built what and when in any area, and the question of which facilities were provided by importing authorities in our Principality. In our short time in government, it has been an important task to unravel these historic mysteries. The more I question these points, the more I uncover the complexities.
The understandable emotions about these comparisons have always hit the headlines, but I would ask hon. Members' indulgence for my not being able to eradicate the differences overnight—nor can I promise to do so in the near future. My hon. Friend the Member for Brecon and Radnor suggested that in the longer term we should consider the costs of Welsh and English authorities. A complete review is in train of water charges in England and Wales, and the issue of charges for Welsh water to English authorities—indeed, of charges between authorities anywhere—is one of the major aspects under consideration.
I have not been able tonight to discuss every reason for the charges having been increased in this way. The body to be examined on this score is the Welsh Water Authority. It was an Act of the last Government which bestowed the duty of financing and administering water and sewerage services in Wales on an autonomous organisation, the Welsh National Water Development Authority. The previous Government gave a good deal of guidance on how it was supposed to act and it is acting within those guidelines. We have not been able to alter this situation in any fundamental way, although we have made some representations to Lord Brecon.
My right hon. Friend the Member for Anglesey mentioned equalising the charges between authorities in Wales as we do for electricity and gas. I am sure that Lord Brecon will consider that in his review. It is not for me or the Secretary of State to direct him to do so, but obviously he will take note of such points. Therefore, before next year's charges are fixed, there will have been a complete review of how charges should be levied in future.
Question put and agreed to .
Adjourned accordingly at twenty-nine minutes past Ten o'clock .