HC Deb 19 July 1960 vol 627 cc240-1

The following Question stood upon the Order Paper:

34. Mr. FRANK ALLAUN

To ask Mr. Chancellor of the Exchequer, if he will defer his sanction to the loan of £18 millions at 4½ per cent. to the Cunard Company until such time as a comparable rate of interest is available to local authorities for housing loans.

Mr. Allaun

Before putting Question No. 34, Mr. Speaker, may I ask whether the Chancellor of the Exchequer has indicated to you any intention to make a statement to the House today about an announcement made by him last Friday in reply to a Written Question from a Conservative Member announcing a further increase in interest rates? Alternatively, has the right hon. Gentleman indicated to you any intention to answer Questions Nos. 57, 59, 60 and 64?

Mr. Speaker

Order. I called the hon. Member to ask Question 34.

The Chancellor of the Exchequer (Mr. Derick Heathcoat Amory)

The proposals contained in the Chandos Report are being examined and account will be taken of all relevant considerations.

Mr. Allaun

But is it not a grave injustice that the Government are raising interest rates on public housing loans at the very moment that they are reducing the rate to certain private firms? Is the Chancellor aware that a £1,500 council house will now cost £5,510 by the time that it has paid interest for 60 years at the new rate of 6 per cent.? Is he aware that this difference of 1½ per cent. will add £1,160 to the total cost of the house, or 7s. 6d. a week extra on the rent?

Mr. Amory

The second half of the hon. Member's supplementary question may arise on another Question, but I do not think that it arises on this.

Mrs. Slater

It does.

Mr. Amory

On the first part of the hon. Member's supplementary question, I repeat that account will be taken of all relevant considerations.

Mr. Shinwell

Is there any reason why the Cunard Line should be specially favoured by obtaining a loan of this character at 4½ per cent.? Does the right hon. Gentleman intend to use this as a precedent so that other shipowners who are anxious to replace old vessels, instead of going to the finance houses and the banks for loans at 7 per cent. or 8 per cent., should have the advantage of the facilities which are to be provided for the Cunard Company?

Mr. Amory

I should like to repeat to the right hon. Gentleman what I have just said, and that is that the proposals are under examination and account will be taken of all relevant considerations.