§ 5. Mr. Lubbockasked the Chancellor of the Exchequer if he will publish a White Paper dealing comprehensively with the question of local authority capital finance.
§ Mr. du CannYes, and I regret that it has not proved possible to publish a White Paper before the House goes into recess. The review of local authority borrowing which the Government undertook has raised a number of important questions which are now being discussed with the local authority associations. When these discussions have been completed a White Paper outlining the Government's intentions will be published.
§ Mr. LubbockIs the hon. Gentleman aware that the Chancellor of the Exchequer said on 3rd October last year that he was extremely concerned by the steep increase in the temporary debt of local authorities, which has since gone up by another £100 million? Is the hon. Gentleman aware that the Chancellor said that before Easter he thought a Bill was needed to extend the powers of the Public Works Loan Board, but he was considering the possibility of issuing such a White Paper as I ask for in this Question? Does the hon. Gentleman consider that, in view of the fact that the interest rate on loans by the Public Works 622 Loan Board is now ½ per cent. above that charged for borrowing by local authorities on the open market, it is time for some action on this matter?
§ Mr. du CannIn answer to the first supplementary question, as I have said, the review has given rise to a number of important points which have taken time to consider and which of course must be for discussion with the local authority associations. This has delayed the moment when a public announcement can be made. We hope to publish a White Paper in the autumn. On the subject of legislation, certainly it would be true to say that legislation will be necessary because the amount available to the Public Works Loan Board is now only £50 million.