§ Mr. Gallacherasked the Chancellor of the Exchequer whether he is aware that the Public Works Loans Board is refusing loans to local authorities in Special Areas on the grounds that their rates are too high; whether it is in accord with the Government's policy that allowance is not made for the peculiar conditions prevailing in these areas which have a greater need of assistance by loan than authorities in more prosperous areas; and what action does he propose to take?
§ Sir J. SimonThe Public Works Loan Commissioners are under statutory obligation, in considering the propriety of granting a loan, to have regard to the sufficiency of the security offered, but they would not, I understand, necessarily regard high rates alone as a ground for refusing an application. In the year ended 31st March, 1939, the Commissioners declined to grant applications by local authorities in only five cases, two of which were subsequently granted on reconsideration. In reply to the last part of the question, it would not be proper for me to interfere with the Public Works2218W Loan Board in the discharge of the duties laid upon them.