§ 76. Mr. EDEasked the Financial Secretary to the Treasury if he is aware that the Epsom urban district council borrowed £6,750 from the Public Works Loans Commissioners in September, 1919, at 5½ per centum interest or such other rate as may be fixed by the Lords Commissioners of His Majesty's Treasury on the sum of £6,750 or on such part thereof as shall for the time being remain unpaid; that on various dates in 1920 and 1921 the same council borrowed further sums totalling £34,000 at 6 per centum, but subject to the same variation; that by Order No. 67,497 the rate of interest on all these loans was increased from 17th June, 1922, to 6½ per centum; that Order No. 68,057 of 5th December, 1922, revokes previous Orders and fixes the interest for new loans at the rate of 5 per centum; that Order No. 68,057, while revoking Orders Nos. 67,497 (which authorised an increase in the rate to 6 per centum) and 67,497, does not authorise the reduction of the rate of interest on the loans whose rate of interest was increased by those Orders; that the last demand for interest was made at the rate of 6½ per centum on 2nd July, 1923; and whether, inasmuch as 710 the Epsom and other urban district councils had to follow the market while the rate of interest was advancing, he will allow them to follow it now that the rate of interest has been reduced?
§ Sir W. JOYNSON-HICKSThe facts are generally as stated by the hon. Member though the Orders quoted do not relate to the loans he has in mind. The loans in question were made at a time when it was not possible to fix the final rate, and it was agreed between the local authority and the Commissioners that the rate should be finally settled when the market rate could be more accurately ascertained. I am communicating further with the hon. Member on this matter.
§ Mr. EDEDoes the right hon. Gentleman think that it is fair that as this local authority had to follow the rate of interest when it went up they should now be debarred from following it when it is going down?
§ Sir W. JOYNSON-HICKSIf the hon. Gentleman will read my answer he will find that there was an agreement that the rate should be finally fixed after the date of the loan and that was finally done with the assent of the local authority about two years afterwards.
§ Mr. EDEIs the right hon. Gentleman aware that the agreement was in the form set forth in my question?
§ Sir W. JOYNSON-HICKSI have gone fully into the matter and I have prepared a letter which is too long to read to the House, but I will send it on to the hon. Member.