§ 28. Mr. Hooleyasked the Chancellor of the Exchequer if he will propose a system of two-tier interest rates so as to provide funds for social needs at a reduced level of interest.
§ Mr. DellNo, Sir. Changing the terms of finance does not reduce the real cost in resource terms of providing facilities to meet social needs. A two-tier system of interest rates would be very difficult to administer and could involve substantial extra public expenditure if the Government were to subsidise some interest rates.
§ Mr. HooleyDoes not my right hon. Friend agree that one of the most valuable and successful actions of the Labour Government from 1966 to 70 was 1318 precisely to introduce a special interest rate system for the purpose of housing? Why cannot that excellent principle be applied in other sectors?
§ Mr. DellIn cases like that it can be done, but where resource costs are involved it seems to me that one should rationally work out one's priorities and apply them directly in terms of public expenditure.