§ Mr. W. WATSONasked the Financial Secretary to the Treasury whether he is aware that in. November last the Fife County Council offered to repay part of a loan of £100,000 received from the Public Works Loan Board in 1921 at 6½ per cent.; that the loan was required to meet expenditure incurred under the Kirkcaldy and District Water Order, 1913; that, in addition to other heavy local taxation, the water rate in this district is 6s. 4d. in the £; and will he consider the advisability of granting the County Council facilities for reducing the debt on reasonable terms or by reducing the interest on the loan to 5 per cent.?
§ Major BOYD-CARPENTERThe facts are as stated in the question. I fear I cannot allow repayment except on terms which will not involve the Local Loan Fund in loss. The rate of interest is governed by the cost of raising the money when the loan was granted, and I cannot admit a claim that it should be reduced at a loss to the Fund, which would have to be made good by the taxpayer.