§ Mr. Sillarsasked the Secretary of State for Scotland (1) what is the average construction cost of a local authority four-apartment house; and what is his estimate of the final total cost of capital repayments and interest over the borrowing period;
(2) what is the present rate of interest charged to local authorities for housing construction; and what is his estimate of the net saving to local authorities taken as a whole if the interest rate was reduced by 4 per cent., 6 per cent. and 9 per cent.;
(3) of the total cost of an average local authority four-apartment house, how much is due to labour, material, land and interest charges.
§ Mr. William RossThe estimated average cost of providing a local authority four-apartment house in 1974 was £10,700, of which £4,800 represents labour costs and £5,900 is for materials. Details of average land costs are not available, and are not included in these figures.
The total repayment of capital and interest over a borrowing period of 60 years depends on the rate of interest from time to time, but at the current Public Works Loan Board interest rate of 14⅞ 308W per cent. would be £95,515. That figure would be reduced by £25,575, £38,225 and £56,590 if the interest rate were reduced by 4 per cent., 6 per cent. and 9 per cent. respectively.
§ Mr. Sillarsasked the Secretary of State for Scotland what have been the average interest rates charged to local authorities for housing construction in each of the past 15 financial years.
§ Mr. William RossThe following are the interest rates for local authority borrowing obtained under annual quotas from the Public Works Loan Board, for periods over 25 years, at the midpoint of the local authority financial year:
1960–61 6⅛ 1961–62 7 1962–63 6⅛ 1963–64 5¾ 1964–65 6 1965–66 6 1966–67 6 1967–68 7 1968–69 7¾ 1969–70 9 1970–71 9½ 1971–72 8¼ 1972–73 9¼ 1973–74 11⅜ 1974–75 16¼ 1975–76 (current) 14⅞