§ Mr. JOWETTasked the Secretary to the Treasury for what purposes loans are now being made by the Public Works Loan Board; what is the total amount loaned by the Board since the beginning of the current financial year; and what were the corresponding figures for the same period last year?
§ Mr. MONTAGUAt the present time loans are only granted by the Public Works Loan Commissioners where it can be shown that their purpose is urgently necessary, in the national interests, for the furtherance of the War, or is of urgent necessity for reasons of public health. This arrangement has been made in pursuance of the Government's general policy272W of postponing or avoiding all new capital expenditure wherever possible, in view of the paramount necessity of conserving the capital resources of the country in the national interests. New loans are therefore only granted in respect of works for which a local authority is able to produce evidence of Treasury or Local Government Board approval, granted since the special restrictions arising out of the needs of the War have been effective. In cases where loans have already been granted, but either have not yet been advanced or have been only partially advanced, the Public Works Loan Commissioners require that all possible efforts must be made by the local authority concerned to postpone or delay expenditure in connection with the loan, and advances are not made out of the loan unless it can be shown that these efforts have-been made. The total amount of new loans granted from 1st April, 1915, to 7th June, 1915, was £27,454, as compared with £809,649 during the corresponding period of 1914. The total amount advanced was £419,271, as compared with £710,445 for the corresponding period of 1914. This amount represents, for the most part, advances in respect of loans which had been granted prior to the new restrictions.