asked the Minister for the Environment if it is proposed to reduce the capital allocation for local authority housing to finance the recently announced increases in home improvement grants; and, if so, if he will give details.

The effects on expenditure of the new improvement grants will not be significant in the current year. In so far as 1986 is concerned, the position is that the capital allocation that year for the local authority housing programme, or for other programmes in projects covered by the public capital programme, has not yet been determined by the Government.

Is the Minister aware that the Minister for Industry, Trade, Commerce and Tourism, Deputy Bruton, said on television recently that the money to fund home improvement grants would come from a cutback in the capital for local authority houses? What has he to say about that?

The Minister may or may not have made that comment. As I have said, the Government have not yet taken a decision on the public capital programme. The additional cost of the increase for home improvements this year is estimated at about £12 million——

For one month?

The estimated figure for 1986 is £12 million. In the document Building on Reality under the general heading of “Housing” which includes SDA loans, HFA loans, local authority programmes and new home improvement grants, the overall figure is £397 million. Even if what the Minister, Deputy Bruton, has suggested is the position, a sum of £12 million from a total of £397 million would hardly put a big dent in that policy. The number of houses available to local authorities in the past three years has well exceeded the figures we set out, namely, an occupancy of 9,000 houses in the three years. That number has been exceeded by almost 1,000 in one year. A sum of £12 million will be required next year and if it is intended to find that in the total amount of £397 million it will not have too great an impact.

Time will tell. In my view it is gross underestimation.

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