§ 3. Mr. William Hamiltonasked the Chancellor of the Exchequer if he is yet in a position to make a statement on his Budget proposal to allow local authorities in the less prosperous areas to secure better access to finance from the Public Works Loan Board.
§ Mr. MacDermotAs I announced on 19th July, local authorities in Scotland, Wales and the Northern and North-West Regions of England will be able to get 40 per cent. of their longer-term borrowing from the Public Works Loan Board this year.
§ Mr. HamiltonCould my hon. and learned Friend give an assurance that that still applies, notwithstanding the announcement of the Chancellor last week?
§ Mr. MacDermotYes, that still applies.
§ Dame Irene WardIs the hon. and learned Gentleman aware that that statement, as it stands, is not in conformity with what the Chancellor of the Exchequer promised for special areas, with which I am concerned? Is he further aware that there has been a reduction in the amount promised by the Chancellor of the Exchequer? Will the Chancellor take the opportunity in his next Budget to ensure that the special areas get the full amount promised to them? It is very awkward to have a promise made to the special areas which is not fulfilled.
§ Mr. MacDermotThe hon. Lady is insatiable for budgets. We argued this matter when debating the Public Works Loans Bill. I cannot accept what the hon. Lady said. My right hon. Friend made it quite clear in his original statement that he was allowing only £40 million for this purpose and that, as a result of that, the percentage rate of access that followed must depend upon the definition of the areas.
§ Dame Irene WardThe right hon. Gentleman could not calculate.
§ Mr. Peter WalkerWill the Financial Secretary now explain why the Chancellor said in his statement that some local authorities were going to get up to 50 per cent., whereas the position is that there is not one local authority in this country which will be able to obtain 50 per cent.?
§ Mr. MacDermotI have explained the matter very fully, and I would refer the hon. Gentleman to what I said during the debate on the Public Works Loans Bill.