HC Deb 28 March 1935 vol 299 cc2077-8
39. Mr. DAVID GRENFELL

asked the Financial Secretary to the Treasury whether arrangements are contemplated for the conversion of existing loans issued by the Public Works Loans Board for housing by small local authorities so as to enable them to borrow on more favourable terms and thus benefit from the prevailing low rates of interest?

Sir WALTER WOMERSLEY (Lord of the Treasury)

No, Sir; it would not be possible to make such arrangements without involving the payment by the State of a subsidy to enable the Local Loans Fund to meet its existing obligations.

Mr. PALING

May I ask whether the hon. Member is aware that these monies were borrowed when rates of interest were very high and that rates of interest are now very low, and whether, as rates of interest are likely to continue low for a very long time, those people are to be expected to pay these very high rates of interest for ever?

Sir W. WOMERSLEY

I will convey all that information to my hon. Friend.