§ Mr. M. Hughes
asked the Minister of Education what are the conditions upon which he approves, or intends to approve, loans to the managers and governors of aided schools to meet their capital costs and, in particular, what are the conditions for repayment and the provisions for default.
§ Mr. Butler
I would refer my hon. and learned Friend to Section 105 of the Education Act. These loans will be the subject of an agreement made between the Minister and the applicants with the consent of the Treasury. Loans of less than £500 will not be made and the period of the loan will in no case exceed 40 years. Loans will be repayable by equal annual instalments of principal and interest. The requirement in Section 105 that before making a loan the Minister shall consult with persons representing the managers or governors is designed, among other things, to obviate risk of default.