§ Mr. HICKSasked the Financial Secretary to the Treasury whether seeing that the Public Works Loans Board has informed the Heston and Isleworth Council that the board has no power to vary the rates of interest, any action will be taken at an early date to lower the rates of interest on existing loans under the Small Dwellings Acquisition Acts?
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§ Mr. HORE-BELISHAAs the hon. Member is no doubt aware, the rate applicable to advances made by the Public Works Loan Commissioners under the provisions of the Small Dwellings Acquisition Acts has recently been reduced from 41 per cent. to 4 per cent., but there is no intention of reducing the rate chargeable upon advances made prior to that date. All these advances are made out of money raised by the issue of Local Loans Stock. That stock could only be redeemed at a heavy capital loss, and so long as it remains unredeemed His Majesty's Government are bound to continue to pay interest upon it at the same rate as when the money was originally borrowed.