§ 24. Mr. C. Royle
asked the Minister of Housing and Local Government and Minister for Welsh Affairs what reply he has sent to the Salford Council arising from the town clerk's letter of 5th December, in reference to high interest rates for the financing of council house building, the proposal that there should be a stabilised rate of 3 per cent. interest through the Public Works Loan Board, and the undertaking of an early review of existing subsidies.
§ Sir K. Joseph
I have told the council that the Government do not accept that housing loans should be made available at less than the prevailing rate of interest, which is now below 6 per cent. I have also said that provided subsidies go to those who need them most it should be possible to continue building without having to charge rents beyond what tenants can reasonably be expected to pay. I reminded the council of the pledge I gave in this House on 1st November that the Government considered it their duty to keep subsidy arrangements under continuous review.