Mr. David Adamsasked the Financial Secretary to the Treasury what is the present rate of interest charged by the Public Works Loan Board for advances to local authorities for housing purposes, how many increases have been made in this rate by the Treasury since 1st January, 1937; and whether he can state the reasons for the continuous variation in the rate?
§ Captain CrookshankIt is the statutory duty of the Treasury to fix such rates of interest to be charged upon loans from the Local Loans Fund as are in their opinion sufficient to enable the loans to be made without loss to the Fund. In accordance with this principle the rates in force on 1st January, 1937, have since been raised on five occasions and the rate now applying to advances for housing purposes is 4 per cent.