§ 49. Mr. Boothbyasked the Chancellor of the Exchequer why the loans advanced to local authorities by the Public Works Loans Board bear a rate of interest so far out of line with that achieved in respect of Government securities; and what steps he is taking to reduce this rate.
§ Mr. DaltonNew loans by the Board are at 2½ per cent. or less. As regards old loans at higher rates of interest, I would refer the hon. Member to the reply given last Tuesday to the hon. Members for West Fife (Mr. Gallacher), Central Edinburgh (Mr. Gilzean) and North Edinburgh (Mr. Willis).
§ Mr. BoothbyDoes not the Chancellor of the Exchequer think it is altogether out of order—I would almost say—for local authorities to be required to pay interest rates up to 5 and 6 per cent., and even 7 per cent. in some cases, for retrospective loans? Will he not do something about it?
§ Mr. DaltonThose local authorities had the misfortune to borrow under a Tory Government, but none the less, if my hon. Friend will study the answer to which I have referred him he will see that all the gates of hope are not quite closed.
§ Mr. GallacherWould the Chancellor of the Exchequer consider hitting the Tories and those they represent a real crack by doing away with interest altogether?
§ Mr. StokesMay I ask the Chancellor whether he contemplates introducing 1409 legislation to relieve some of the local authorities from these exorbitant rates which were perpetrated on them when the party opposite was in office?