HC Deb 16 March 1948 vol 448 cc1866-7
25. Mr. Henderson Stewart

asked the Secretary of State for Scotland if he is aware of the widespread opposition of Scottish town councils to the proposal contained in the recent circular from the Scottish Home Department intimating that the rate of interest on housing loans is to be increased to 3 per cent.; whether he has consulted the local authorities on the matter; and if he is prepared to reconsider his decision.

Mr. Woodburn

I have received representations from a number of Scottish town councils in regard to the recent increase in the rate of interest on loans to local authorities. As regards the second and third parts of the Question, I would refer the hon. Member to the answer given by the Chancellor of the Exchequer on 20th January to the hon. Member for Mile End (Mr. Piratin).

Mr. Stewart

Is the right hon. Gentleman aware that many local authorities have housing schemes which are incomplete, and greatly delayed, on account of the Government's policy by which they have to pay interest on loans where they get no return in rent whatever; and is not that a very serious and most unfair burden on the local authorities?

Mr. Woodburn

I think the hon. Member had better await the further replies of my right hon. and learned Friend the Chancellor of the Exchequer.

Sir W. Darling

Is the right hon. Gentleman aware that there are private lending organisations, unconnected with the Government, which are prepared to offer loans at 2⅜—2⅞ per cent? Is it encouraging to local authorities to learn that the Government are not doing as well as private moneylenders?

Mr. Emus Hughes

Is the Minister aware that the more enterprising councils in Scotland have largely helped to solve this problem by establishing municipal banks?

Mr. Stewart

The Secretary of State said, in reply to my supplementary question, that the Chancellor of the Exchequer would be answering some further questions, or making some further statement on this particular Scottish matter; what does he mean by that?

Mr. Woodburn

This is not a particular Scottish point. The work of the Public Works Loans Board goes on all over the country.