§ 42. Sir RICHARD MELLERasked the Minister of Health if, in view of the continuing low rate of interest prevailing, he will consider making such arrangements as may lead to a reduction in the rate of interest on loans obtained under the Small Dwellings Acquisition Act when interest rates were much higher?
Sir H. YOUNGThe rate of interest for advances under the Small Dwellings Acquisition Acts was reduced to 4 per cent. by order dated 11th May last as regards advances on and after 1st June, 1933. Orders fixing the rate of interest cannot apply to advances already made. The rates applying to such advances were fixed in relation to the rates at which the local authorities were themselves able to borrow at the time the advances were made, and cannot now be reduced.
§ Mr. THORNEIs the right hon. Gentleman aware that the Order simply means that the local authority must provide 90 per cent. of the value of the house?