HC Deb 29 March 1922 vol 152 cc1325-7
59. Sir A. YEO

asked the Minister of Health if the inquiry which his Department is undertaking will cover the whole of the expenditure of the Poplar Borough Council and Guardians separately; whether, in view of the present financial position of the guardians and their demands upon the ratepayers, any application to his Department for a loan has been made; whether it has been granted; and, if so, what is the amount, and on what conditions?

Sir A. MOND

The inquiry extends only to the expenditure of the guardians. Application has been made for sanction to temporary loans amounting to £352,143, the amount actually sanctioned being £221,250. The loans are repayable out of sums which the guardians will receive from the Metropolitan Common Poor Fund.

Mr. W. THORNE

Can the right hon. Gentleman give any reasons why, when loans are granted to the local authorities for unemployment pay and outdoor relief, 1½ per cent. more is charged than is recognised by the bank rate?

Sir A. MOND

The bank rate is not the rate at which we can borrow money.

Mr. THORNE

Why should the charge be very much higher?

Sir A. MOND

The rate and conditions of these loans are regulated by a committee, of which Sir Harry Goschen, a banker of great experience, is chairman, and they lay down the conditions under which this money ought to be lent.