§ 37. Major NATHANasked the Financial Secretary to the Treasury whether, in view of the large amount of money available for investment in gilt-edged securities, the Government is now prepared to reduce the minimum rate of interest on advances made by the Public Works Loan Board to local authorities for the purpose of housing and slum clearance from 3⅝ per cent. to some lower figure?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)I am afraid that the facts do not warrant any reduction in the rate at present.
§ Major NATHANIn view of the glut of cheap money are the Treasury proposing to withhold the advantage of it from ordinary working people who might otherwise be able to obtain houses at cheaper rents than are now charged?
§ Mr. HORE-BELISHAThe hon. and gallant Member is no doubt aware that we have to borrow at £3 7s. and are lending at £3 12s. 6d. and that a fractional reduction in the rate would hardly be 499 considered a sufficient stimulus to enable further borrowing to take place.
§ Major NATHANDoes not my hon. Friend think that any reduction in the rate will stimulate the provision of houses for the poor?
§ Mr. HORE-BELISHAAny reduction must be within the limits of prudence.