§ 36. Mr. Arthur Lewisasked the Minister of Housing and Local Government whether he will take whatever action may be necessary to alter the scheme of rate interest earned of 3½ per cent. for moneys repaid under the Consolidated Loans Fund, controlled by S.I., 1955, No. 1866, to a more realistic rate of 5 per cent., or the actual rate of interest really earned on these capital repayments.
§ Mr. MacCollLocal authorities with consolidated loans funds may assume my right hon. Friend's approval to a rate of accumulation not exceeding 5 per cent. for annuity loans, to take effect during the current financial year and thereafter. He is also proposing to amend the Instrument to which my hon. Friend refers, the Local Authorities (Sinking Funds) Regulations 1955, so as to specify a rate of 5 per cent., also from the current financial year. This will affect mortgage loans pools and sinking funds.