HC Deb 05 March 1929 vol 226 cc186-7
48. Mr. JAMES STUART

asked the Financial Secretary to the Treasury under what Regulation or statute the Public Works Loan Board, in making loans to local authorities, is limited as to the amount of such loans to 50 per cent. of the sale proceeds of saving certificate issued within the area of the borrowing authority during the 12 months preceding the application for the loan; whether he is prepared to reconsider this arrangement in the case of the application of the county council of Nairnshire for a loan of £815 to provide offices for the sanitary inspector, in view of the exceptional circumstances which have resulted in practically the entire sale of certificates for both county and burgh of Nairn being effected in the burgh; and whether he is aware that the Scottish Board of Health has recommended to the Public Works Loan Board that a loan should be arranged?

Mr. SAMUEL

In reply to the first part of the question, I would refer my hon. Friend to the Report of the Committee of Inquiry into Savings Certificates and Local Loans, etc. (Command Paper 1865), where he will find a full account of the matter. The point of the special arrangement with regard to savings certificates is that it enables a local authority to obtain loans for many purposes for which the Public Works Loan Board would not normally lend at all. The arrangement is necessarily based on the known sales of certificates in the area, and would become unworkable if other considerations had to be taken into account. I regret that it is impossible to make an exception in the case referred to by my hon. Friend. In reply to the last part of the question, the assent of the Scottish Board of Health is in some cases a necessary preliminary to the consideration of a loan application but does not affect the discretion of the Public Works Loan Commissioners.

Mr. STUART

Is the hon. Gentleman aware that this means that the county council of Nairn are practically debarred from borrowing any money at all, owing to the fact that all the sales of these certificates have taken place in the burgh?

Mr. SAMUEL

My hon. Friend wrote me very fully upon this matter, and I made it my business to go into the subject carefully, and I have come to the conclusion which has been stated, because I think the scheme will become unworkable if we make alterations, and that we must adhere to the Regulations.