(RATES OF INTEREST ON LOCAL LOANS.) (Hansard, 19 February 1968)

§ Mr. Diamond

I beg to move Amendment No. 10, in page 6, line 11, at end insert: section 7(4) of the Local Government (Development and Finance) (Scotland) Act 1964. This Amendment deals with the rate of interest for Public Works Loan Board loans to local authorities fixed by the Treasury under the Public Works Loans Act, 1897, which has often been used as a basis for other interest rates and which has been referred to in a number of Statutes, some general and some local. The repeal of the 1897 provision by the Public Works Loans Act, 1964, and the introduction at that time of a two-tier interest rate for P.W.L.B. lending to local authorities made it necessary to lay down how these references in other Acts were in future to be interpreted.

The Scottish Local Government Act of 1964 provides that local authorities may advance money in certain circumstances to persons for the erection of buildings, chiefly factories. It was passed after the Public Works Loans Act, 1964, and contains a reference to the lower of the rates fixed under that Act, and it provides that these advances shall carry interest at a rate not less than ¼ per cent. greater than the lower rate fixed by the Treasury under Section 2 of the Public Works Loans Act. The repeal of the 1964 Act means that the provision in the Scottish Act must be altered.

This Amendment and the Amendment to Schedule 6, to which, perhaps, I may refer at the same time, bring the Act into line with the other Acts listed in the Clause. The Treasury direction under Clause 6 will cover this Act as well as the others and will specify that 172 the lower P.W.L.B. rate shall apply in respect of this Act.

I hope that, with that clear and lucid explanation. the House will accept the Amendment.