HC Deb 13 December 1938 vol 342 cc1797-8
51. Mr. E. J. Williams

asked the Chancellor of the Exchequer whether he is aware of the excessive burden on local rates by high interest charges on public loans; and whether the Government proposes to take action to obtain relief for the local authorities?

Sir J. Simon

Local authorities in very many cases have been able to convert their loans to a lower rate of interest. Where that is impossible or not yet possible because the contract with the lender does not give the borrower an option to convert at present, the State cannot interfere.

Mr. Williams

Could not the Government take action in this matter comparable with the action they took in connection with the conversion of War Stock and thus help local authorities?

Sir J. Simon

I do not think the two cases are comparable, but if the hon. Member would like to discuss the matter with me I should be very glad to see him.

Miss Wilkinson

Is the right hon. Gentleman not aware that some local authorities particularly in the distressed areas are very poor? They had to borrow in 1920, and are still paying high rates of interest on the loans which they then borrowed.