HC Deb 11 February 1958 vol 582 c202
41. Mr. Collins

asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will now grant to new town development corporations the same facilities in respect of interest on loans as are available to local authorities.

Mr. H. Brooke

I assume that the hon. Member has in mind that the corporations should be allowed to raise money in the market. They have no power to do so, and I cannot give it to them.

Mr. Collins

Will the Minister look into this possibility again? Does he agree that in present circumstances, if they have to borrow long term at the present high rates of interest, they are permanently handicapped? Would it not be possible to find a means to allow them to finance their development as efficiently as possible?

Mr. Brooke

I appreciate the difficulty, and it has been looked at. However, I do not think there is any way round it. If they were allowed to borrow short term when interest rates were high, the Exchequer might then be entitled to lend short when the rates are low, and in the end the corporations might be no better off.