HC Deb 22 May 1962 vol 660 cc206-7
21. Mr. Milne

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what were the amounts spent on interest charges in repayment of loans by Bedlingtonshire Urban District Council, Seaton Valley Urban District Council and Blyth Borough in each of the years from 1951 to 1961.

The Minister of Housing and Local Government and Minister for Welsh Affairs (Dr. Charles Hill)

As the Answer contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Mr. Milne

While I am grateful to the right hon. Gentleman for arranging to do that, may I ask him if he will take notice that at the moment these interest charges are having an adverse effect on the housing arrangements of these councils? Is he aware that it takes almost as much as the cost of three houses to pay the interest charges on one?

Dr. Hill

I note the hon. Gentleman's point, but the figures which he will find in the OFFICIAL REPORT Will reflect both the expansion of capital investment financed by loans as well as the interest rates.

Mr. Frank Allaun

Is the right hon. Gentleman aware that following the Bank Rate reduction there has been no reduction at all in interest charges which local authorities are having to pay? What does he propose to do about that?

Dr. Hill

The interest charges which local authorities pay are much more a matter of long-term borrowing, as the hon. Gentleman knows.

Mr. Emrys Hughes

Is the right hon. Gentleman aware that Switzerland is lending I.C.I. an immense sum of money—£5 million—at a lower rate of interest than that at which it can be borrowed in this country? Will he make arrangements for local authorities troubled about high interest rates to borrow from Switzerland?

Dr. Hill

I am grateful for the tit-bit of information which the hon. Gentleman gives.

Following are the figures*:

PAYMENTS OF INTEREST BY
Year Bedlington-shire U.D.C. Seaton Valley U.D.C. Blyth Borough
£ £ £
1950–51 … 54,633 61,702 64,095
1951–52 … 59,356 66,175 71,967
1952–53 … 68,569 72,911 83,909
1953–54 … 78,797 80,164 104,454
1954–55 … 90,567 91,448 119,810
1955–56 … 102,972 103,388 135,506
1956–57 … 117,703 114,782 156,546
1957–58 … 143,648 119,708 167,836
1958–59 … 184,138 123,882 174,725
1959–60 … 208,005 127,876 179,810
1960–61 … 229,504 145,401 188,757
* Source— of Accounts.