HC Deb 08 February 1945 vol 407 cc2342-3

Each of the following enactments (which relate to loans made by the Public Works Loan Commissioners to local authorities) that is to say—

  1. (a) the proviso to Sub-section (2) of Section fifty-two of the Small Holdings and Allotments Act, 1908;
  2. (b) Sub-section (2) of Section seventy-two of the Housing (Scotland) Act, 1925; and
  3. (c) Sub-section (2) of Section one hundred and twenty-three of the Housing Act, 1936; shall have effect subject to the following amendments, that is to say—
    1. (i) in paragraph (a) (which provides that the loan shall be made at the minimum rate 2343 allowed for loans out of the local loans fund) the reference to the minimum rate shall be construed as a reference to the minimum rate applicable to the period for which the loan is made;
    2. (ii) paragraph (c) (which provides that the longer duration of a loan shall not be taken as a reason for fixing a higher rate of interest) shall cease to have effect.—[Mr. Peake.]

Brought up, and read the First time.

4.45 p.m.

Mr. Peake

I beg to move, "That the Clause be read a Second time."

The Committee is aware that we are proposing a Schedule of interest rates under the Bill which varies in relation to the term for which the loan is to be granted. There are these provisions in the Housing Acts and the Small Holdings and Allotments Act which, therefore, become inappropriate. It is perfectly clear that the housing loans must be granted upon the same terms as other loans for the identical period. It would not be fair to give local authorities borrowing for housing for 30 or 60 years money at a rate which is charged for loans for five years and, therefore, in order to make the necessary Amendment this new Clause is required.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.

Bill reported, with Amendments; as amended, to be considered To-morrow, and to be printed [Bill 24].