§ 64. Viscount Hinchingbrookeasked the Chancellor of the Exchequer what are the rates of interest on Government borrowing for periods of less than five years, between five and 15 years and for more than 15 years, respectively.
§ Mr. DaltonApart from floating debt, the only present Government borrowing is at 2½ per cent. for 21 years.
§ Viscount HinchingbrookeIs the right hon. Gentleman prepared to maintain his stand last week about local authority borrowing, that the figures he gave do not contain a large element of Government subsidy? What he says today seems to contradict that.
§ Mr. DaltonMy answer last week was both carefully considered and abundantly true The improvement in the national credit which His Majesty's Government have brought about is not at all the same thing as a subsidy. On the contrary, the subsidy to local authorities in respect of housing will, as I indicated in my reply last week, be subject to reconsideration in view of this great and beneficial improvement in the national credit. I am astonished that the Noble Lord should once more fail to give full support to the great Savings Movement.
§ Viscount HinchingbrookeHow is the Chancellor of the Exchequer able to give local authorities loans at 1½ per cent. for five years when he proposes to borrow at 2½per cent? How can he do that without Treasury subsidy?
§ Mr. DaltonThe Noble Lord has not even understood the answer. I will read it again:
Apart from floating debt—and I interpolate that we are raising it at one half of one per cent.——the only present Government borrowing is at 2 per cent. for 2½ years.A local authority likewise can borrow at 2½ per cent. for 21 years.