§ 52. Sir. Tinkerasked the Chancellor of the Exchequer what steps he is taking to assist local authorities to convert municipal stock bearing interest of 4 per cent, and over; and what conditions he is asking them to adopt in offering interest on converted loans or other loans?
§ Captain CrookshankArrangements are being made with the local authorities concerned under which they will give notice that they are exercising their option to repay these stocks and at the same time make an offer of conversion in respect of the whole or part of the stock. The local authorities are being asked to adopt uniform terms for the conversion offers which will be at par with 3½ per cent, stocks with a fife of 19 to 29 years. The Public Works Loans Act contains provisions under which the Treasury can make advances to enable local authorities to repay any stock not converted.
§ Mr. TinkerWhy is the figure of 3½ per cent, mentioned when the Government are borrowing money now at a rate not exceeding 2 per cent.? Why cannot municipal stock be put on the Government basis?
§ Captain CrookshankThe matter has been carefully considered, and this is the decision reached by my right hon. Friend.