§ 59. Mr. Gallacher
asked the Chancellor of the Exchequer if he will provide the local authorities with interest-free loans as 27 a means of stimulating the housing programme and of providing houses at a reasonable rent.
§ The Chancellor of the Exchequer (Mr. Dalton)
No, Sir. It is proposed shortly to introduce legislation providing increased assistance to local authorities in respect of houses built during the immediate post-war period, but this assistance will take the form of subsidies, and not of concessions on rates of interest.
§ Mr. Gallacher
Is the Chancellor aware that there is no justification for interest other than risks taken in lending money? As he has taken no risk in lending money to local authorities what reason is there for interest other than to keep in line with the robbers in the City? Further, is there any use in accepting interest on the one hand and handing out subsidies with the other?
§ Mr. Dalton
I think the hon. Gentleman is embarking on large and general issues of economic theory, which we cannot go into now.