§ 50. Mr. GRAHAM WHITEasked the Chancellor of the Exchequer if the recent increase in the rates of interest charge able on housing and other loans granted from the Local Loans Fund will be can celled, in view of the reduction in the bank rate?
§ Mr. PETHICK-LAWRENCENo, Sir. The rate of interest charged on loans from the Local Loans Fund is fixed by reference to the cost of financing the fund by the issue of long-term stock and not by reference to changes in the bank rate.
§ Mr. WHITEIs it the intention of the Government to reduce these charges at the earliest possible moment?
§ Mr. PETHICK-LAWRENCEThe Treasury is compelled by a Statute to charge such a rate as will cover the Crown against loss, and no doubt, when that can be down at a lower rate, the matter will be considered.