HC Deb 26 February 1959 vol 600 cc1294-5
61. Mr. Awbery

asked the Chancellor of the Exchequer how many resolutions have been received by his Department from local authorities regarding the high rates of interest paid to the Public Works Loan Board; and, in view of the wide dissatisfaction expressed at the present arrangements to meet local government requirements, if he will give further consideration to the methods by which they have to raise capital, with a view to meeting the wishes of these authorities.

Mr. Erroll

Fifteen such resolutions have been received since the present interest rates of the Public Works Loan Board were fixed on 25th October, 1958. As to the second part of the Question. I would refer the hon. Member to my right hon. Friend's reply of 2nd December, 1958, to the hon. Member for East Ham, North (Mr. Prentice).

Mr. Awbery

Is the hon. Gentleman aware that local authorities are making a protest against the discrimination which is being shown towards them as compared with building societies, which are receiving money from the Public Works Loans Board at a lower rate than local authorities which are building houses? Will he see that local authorities get the same chance as building societies?

Mr. Erroll

I shall take note of what the hon. Member has said.

Mr. Jay

In view of the existing high level of unemployment, how do the Government justify a rate of 6 per cent. to local authorities?

Mr. Erroll

That is because the rate is fixed in reference to free market conditions. I would remind the right hon. Member that it has been lowered three times in the last twelve months.

Mr. Jay

In that case, is it not obvious that the Government ought to reduce the Bank Rate to give more work to local authorities?

Mr. Erroll

That is quite another question.