§ 57. Mr. Corfield
asked the Minister of Housing and Local Government what has been the average increase in the cost of building a three-bedroom council house since 1st January, 1965; what proportion of this increase is attributable to the increases in the cost of imported materials resulting from devaluation, and the incidence of selective employment tax; and what has been the effect on economic rents of the increase in interest rates for the years ended 31st December, 1965, 1966, 1967 and 1968.
§ Mr. MacColl
£646, from £2,354 in the last quarter of 1964 to £3,000 in the third quarter of 1968, of this increase236W about £40 is due to the effect of devaluation on the cost of imported materials and £90 to S.E.T. The remainder is accounted for by the adoption of higher standards and various increases in the cost of labour and materials. The effect of the Housing Subsidies Act, 1967, is to mitigate the consequences to housing authorities of rising interest rates in respect of new houses.