§ Mr. Chapman
asked the Secretary of State for the Environment how he intends to operate the power proposed in amendment 112 to clause 105 of the Housing Bill to allow local authorities to waive or reduce the rate of interest charged on loans in connection with the homesteading schemes.
§ Mr. Stanley
The power will enable schemes like the GLC's homesteading scheme to continue, but it is not confined to the GLC. My right hon. Friend will consider and be able to approve individual schemes submitted by local authorities, but he may, if it appears appropriate, issue an order, with the consent of the Treasury, on the basis of which local authorities could proceed without the need for individual approval. Among the considerations which my right hon. Friend will have in mind, either in deciding individual cases or in preparing an order, will beFirst, that the dwelling concerned is in need of significant improvement or repair: secondly, that the purchaser enters into an agreement with the authority to carry out specified works within a period specified in the agreement; thirdly, that the extent to which interest is reduced and the length of this reduction or waiver within the maximum five-year period permitted by the amendment, will depend upon the inducement needed in the particular circumstances of the scheme.