§ 15. Mr. CHARLES BATHURSTasked the President of the Board of Agriculture whether, in the event of a public utility society commencing building operations this summer in a district where there is a shortage of workmen's cottages, nine-tenths of the required capital will be obtainable on loan from the Public Works Loans Commissioners, as well as the extension of the period of the loan and the reduction of the rate of interest hitherto authorised; and what in future will be the rate of interest charged upon such loans?
§ Mr. RUNCIMANThe Treasury have provisionally approved the following conditions for loans to authorised societies under the Housing Bill: the proportion of the required capital which may be borrowed will be nine-tenths instead of two-thirds as at present, the maximum period of the loans will be sixty years instead of forty, and the rate of repayment, including interest and sinking fund, will be 4½ per cent. instead of £4 16s. 11d.
§ Mr. BATHURSTWill these improved terms be available at once in the event of cottages being put in hand by these societies forthwith?
§ Mr. RUNCIMANIf the Bill passes, they will be available on the passage of the Bill.
§ Mr. BATHURSTBut not otherwise?
§ Mr. RUNCIMANBut not otherwise.
§ Mr. J. HOGGECan the right hon. Gentleman say how these terms differ from the average Grants to local authorities for the same purpose, and will they always be given on the sixty years' period of repayment?
§ Mr. RUNCIMANI cannot carry in my mind the whole of the terms that apply to local authorities. Local authorities are advanced the whole of their capital expenditure, and the rate of interest is below that fixed for the societies. In every respect the local authorities have advantages over the societies.