Mr. T. THOMSONasked the Financial Secretary to the Treasury if he will state on what terms the Public Works Loan Commissioners have borrowed the £74,000,000 which they have lent to local authorities for housing purposes, giving particulars of the price of issue and the rate of interest of the perpetual Local Loans Stock which has been raised for tins purpose; and on what terms and after what period these loans can be redeemed by the Public Works Loan Commissioners, and the average rate per cent, of interest which has been paid for such issues made to date for housing loans under the 1919 and subsequent Housing Acts?
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Mr. YOUNGThe amount of 3 per cent. Local Loans Stock created since the passing of the Housing Act, 1919, is approximately £140,000,000 face value. This stock has been issued at various rates per £100 stock, the main rates being 50 in October, 1920, and January, 1921; 52 in October, 1921, and 57 in January, 1922. The average effective rate of interest on the stock issued is £5.55 per cent. Local Loans Stock is a perpetual stock, redeemable only at par after a resolution of the House authorising such redemption. In present circumstances there is obviously no likelihood that the stock can be redeemed with advantage.