asked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he will restore housing subsidies for houses built for general need by local authorities in areas where there is severe unemployment amongst building trade workers.

No, Sir, but I am willing to consider requests to build more houses from local authorities in such areas.

Is the right hon. Gentleman willing to consider a request from Newcastle Council, which is disturbed at his cutting down of the allocation of houses? Will he particularly bear in mind the very large number of building trade workers who have been out of work now for some considerable time and who could be usefully employed in building houses for general need?

Yes, I am quite willing to agree to Newcastle-upon-Tyne building more houses than were built there last year. I understand that the council has put in an application to build something like 50 per cent. more. It is perhaps open to question whether it will succeed.

In the interests of economy, does not the right hon. Gentleman think that the Government might save more money by restoring housing subsidies than by having to pay unemployment benefit to building workers?

No, Sir, I think there are few local authorities which could not afford to build houses without subsidy provided they adopt a proper system of pooling rents.