§ 82. Mr. DALTONasked the Minister of Health whether the rate of interest on loans raised by local authorities will be affected by the recent rise in the bank rate; and, if so, to what extent?
Mr. CHAMBERLAINI do not apprehend that the rate of interest on long period loans raised by local authorities for capital works will be in any way affected by the recent increase in the bank rate. Any increase in the rate on temporary borrowings will be largely offset by higher interest earnings on credit balances; and in any case the net effect on the total interest payments by local authorities will be so slight as to be negligible.