HC Deb 21 July 1873 vol 217 cc660-1
MR. DELAHUNTY

asked Mr. Chancellor of the Exchequer, Whether, under legislative enactments, the Public Works Loan Commissioners, with the sanction of Her Majesty's Treasury, are enabled to grant loans bearing interest at 3½ per cent. per annum to local authorities in England to obtain water supplies for their respective districts; whether the Board of Public Works in Ireland, with the sanction of the Treasury, are enabled to grant similar loans at 4 per cent. per annum to local authorities in Ireland for like purposes; and, whether the Treasury has not this year fixed 5 per cent. as the rate to be charged on a loan recommended by the Irish Board to be made to the Municipal Corporation of Waterford for their water supply; and, if so, whether he will state the reasons or motives for charging loans for sanitary purposes in Ireland with a rate of interest nearly fifty per cent. in excess of similar loans in England?

THE CHANCELLOR OF THE EXCHEQUER

Sir, I have to answer the first three Questions put by the hon. Gentleman in the affirmative. As to the fourth Question, I may state that we have not the power by law of charging for waterworks in Ireland the same rate of interest as is now allowed in England—namely, 3½ per cent. The general rule in such cases is to charge 5 per cent, with a rather long period for the repayment of the principal; but it is in the power of the Treasury to charge 4 per cent, with a shorter period for repayment. After taking the best advice, we thought this was not a case in which we ought to deviate from the ordinary rule that has hitherto been adopted in regard to the matter.

MR. DELAHUNTY

said, he wished to be informed whether the time for repayment was not 50 years in England, whereas in Ireland it was only 22 years?

THE CHANCELLOR OF THE EXCHEQUER

said, he really did not know.

MR. DELAHUNTY

said, that in consequence of the answer of the right hon. Gentleman, he should on an early clay ask whether the Treasury were justified in charging 5 per cent for loans in Ireland, when they were allowed to lend money on loan at 4 per cent in England?