asked the Secretary of State for Scotland to what extent he estimates recent rises in the rate of interest will affect house building in Scotland.

If, as I assume, the hon. Member has in mind the effect on the rate of house building, I regret that it is not possible to make any forecast of the intentions of the local authorities and other house builders concerned.

Does not the Minister realise that the high rates of interest are likely to send up rates very high? Can he tell the House whether it is the deliberate policy of the Government to cut down house building in Scotland?

That is not our deliberate intention, and I trust that in those areas where there is urgent need for more housing local authorities will continue their efforts which have been so successful in recent years. I hope that perhaps, with luck, on the next occasion the interest rates may be reduced, and then the Questions by the hon. Member on the subject may also be reduced.

Would not the right hon. Gentleman agree that the rise in interest rates resulted in the loss of 5,000 houses in Scotland last year?

No, I do not agree with that. Certain local authorities in certain areas are more or less overtaking their housing arrears, and there has been a decline for that reason.

asked the Secretary of State for Scotland the total interest charges charges paid on a municipal house costing £1,500 in October, 1951, interest over 40 years; and what would be the interest charges on the same house at present interest rates.

The total interest charges for post-war houses are spread over 60 years. For a house costing £1,500, they would amount to £1,743 at the interest rate in October, 1951, and to £3,446 at the present rate.

Surely the right hon. Gentleman must be aware that because of Government action every municipal house built in Scotland is now costing £1,700 more in interest rates. Does he not think that this must deter local authorities from undertaking housing schemes? Did the right hon. Gentleman mean to intimate, in reply to an earlier Question, that there was likely to be a reduction in these interest rates in the near future?

My reply to the first part of the hon. Gentleman's supplementary question is that I never suggested that raising interest rates is an incentive to building. Nobody would do such a thing. To give a lower rate of interest to house building, however, would open the door to many other applications and would be a concealed subsidy. As to the second part of the supplementary question, I can only express the hope that the next move in interest rates might perhaps be a downward one, in which case I might perhaps not get this sort of question.