HC Deb 02 July 1935 vol 303 cc1716-8W
Lieut.-Colonel MOORE

asked the Secretary of State for Scotland whether the scheme of the Glasgow Corporation for replacing their £2,500,000 5½ per cent. loan by the issue of mortgages has received his approval; and what is the general policy of his Department with regard to such schemes?


The replacement of the loan in question by the issue of mortgages did not require or receive my specific approval. In general a local authority in Scotland may borrow for purposes authorised by Statute without the consent of any central department provided the resolution to borrow has been agreed to by two-thirds of the members present and voting at the meeting at which it is passed. When a local authority has so resolved to borrow—whether in connection with the redemption of a loan or not—it is within its discretion to decide that the sum required shall be raised otherwise than by the creation of stock.