66. Mr. MALONE
asked the Chancellor of the Exchequer whether he expects the public to subscribe in any quantity to the 5 and 6 per cent. Housing Bonds when there are other Government securities available for 7 per cent.?
§ The MINISTER of HEALTH (Dr. Addison)
I have been asked to answer this question. Experience gained up to the present indicates that Housing Bonds, 223 the interest on which is usually 6 per cent., have been taken up readily in many parts of the country, and I have every hope that the issues will be successful if they receive the support to which they are entitled on all sides. My hon. Friend should remember that the interest on Housing Bonds is assured for a term of years, whilst there is no security that the rates of interest to which he otherwise refers will continue to be received.
§ Colonel ASHLEY
Is the right hon. Gentleman aware that the success of these bonds is gravely imperilled, owing to the impression that the cost of housing is very much in excess of the real requirements?
§ Dr. ADDISON
Of course the cost of housing must, to a certain extent, I agree, affect the matter prejudicially, but I would welcome any practical suggestion as to how that cost should be reduced.
Is the right hon. Gentleman aware that the issue of these Housing Bonds, and the campaign that is being conducted to make them a success, is resulting in numerous persons who have lent money to local authorities at low rates of interest calling up those loans, and thus reducing many local authorities to a state bordering on bankruptcy?