asked the Minister of Public Building and Works whether he will introduce legislation to ensure that rents are paid by the occupants of Grace and Favour residences.

No, Sir.

Will the hon. Gentleman recognise that that is an appalling answer? Is he aware that in 1963 more than £81,000 of the taxpayers' money was spent on these houses? As it has often been said by the Government that subsidies should go only to those who need them, how can he justify giving a rent-free publicly-owned house to a Midland Bank director, among others, in view of the situation in London where the Rent Act is operating for another section of the community?

These residences form part of the Royal Palaces and allocation and use of all accommodation in the Royal Palaces are matters for the Sovereign. We have no jurisdiction in the matter.

While allocation may be a matter for Her Majesty, getting back the income which the taxpayer is spending on renovation and maintenance rests with the hon. Gentleman's Ministry, and it is up to him to reimburse the taxpayers for the money spent.

No, Sir. The arrangement under which we undertake responsibility for the repair and maintenance of the Royal Palaces results from a transfer to the Votes in 1831 in consideration of a substantial reduction in the Civil List. I remind the hon. Gentleman that under the arrangements by which the Civil List is paid the Crown Estate Commissioners were able to hand over to the Treasury surplus revenue of more than £2 million in the year 1962–63.