CONFIDENTIAL
1) PASSAGE ON TARGETS AS FOLLOWS:
" ..ONLY WHEN WE ARE ABLE TO PROVIDE NEW HOMES FOR ABOUT
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200,000 PEOPLE A YEAR IN THE PUBLIC SECTOR WILL WE BE MAKING THE KIND OF IMPACT WE SET OUT TO DO. IN THIS AND THE NEXT FINANCIAL YEAR WE WILL STILL BE UNDER THE INFLUENCE OF RESTRAINTS IMPOSED DURING THE RECESSION, AND TAKING ALL GOVERNMENT-FINANCED HOUSING TOGETHER, INCLUDING THAT OF THE HOUSING AUTHORITY AND THE HOUSING SOCIETY, COMPLETIONS IN THESE TWO YEARS WILL HOUSE ABOUT 97,000 AND 109,000 PERSONS RESPECTIVELY. BUT IN 1978/79 THE FIGURES WILL RISE DRAMATICALLY TO 170,000 AND TO 224,000 IN '79/80. THEREAFTER FIGURES WELL OVER THE 200,000 MARK WILL BE MAINTAINED. THE LAND IS EARMARKED, THE HOUSING DEPARTMENT WILL HAVE THE DESIGN AND CONSTRUCTION CAPACITY, WE HAVE THE FINANCE, MANY OF THE RELEVANT CONTRACTS ARE ALREADY LET. THE BACK OF THE PROBLEM SHOULD BE BROKEN BY '84, PROVIDED ALL CONCERNED MAINTAIN THE PRESSURE NECESSARY TO KEEP ON OUR TARGETS. ''
11) MAIN BITS OF PASSAGE ON HOME OWNERSHIP ARE AS FOLLOWS:-
HON MEMBERS MAY RECALL THAT IN THIS YEAR'S BUDGET SPEECH THE FINANCIAL SECRETARY ANNOUNCED THE GOVERNMENT'S INTENTION OF BOOSTING PRODUCTION BY BUILDING AN ADDITIONAL 30,000 FLATS FOR SALE AT AN AVERAGE RATE OF 5,000 FLATS A YEAR TO PROVIDE ADDITIONAL ACCOMMODATION FOR SOME 180,000 PEOPLE. THE NECESSARY ADDITIONAL SITES HAVE BEEN FOUND AND THE FIRST INSTALMENT OF 5,000 FLATS WILL BE READY FOR SALE IN '79/80, AND FURTHER INSTALMENTS WILL THEN FOLLOW EACH YEAR. THESE FLATS
ARE INCLUDED IN THE FIGURES I HAVE ALREADY GIVEN.
THE ORIGINAL INTENTION WAS TO SELL THEM ONLY TO PERSONS
ALREADY IN HOUSING ESTATES SO AS TO MAKE ROOM IN RENTED
ACCOMMODATION FOR OTHERS IN MORE NEED, HOWEVER, AFTER CAREFUL THOUGHT I REACHED THE CONCLUSION THAT PROMOTION OF HOME OWNER-
SHIP IS SUCH A DESIRABLE SOCIAL OBJECTIVE IN ITS OWN RIGHT THAT THE SCHEME NEEDED BROADENING, AND ALSO THAT THE FINANCIAL
I SSUES INVOLVED WERE SO COMPLEX THAT CONSIDERABLE DRIVE WOULD
BE NEEDED IF THEY WERE TO BE SOLVED SUFFICIENTLY FAST.
ACCORDINGLY, AFTER MUCH PRELIMINARY WORK HAD BEEN DONE, AT THE END OF JULY I SET UP A WORKING PARTY ON HOME OWNERSHIP UNDER THE CHAIRMANSHIP OF THE FINANCIAL SECRETARY....
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> } IT WILL NOT BE EASY TO DEVISE MORTGAGE FACILITIES TAILORED
TO THE CIRCUMSTANCES OF PEOPLE OF THE INCOME RANGES WE HAVE IN
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CONFIDENTIAL
/MIND, BUT
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