§ Mr. Eldon Griffiths
asked the Secretary of State for the Environment what is his policy towards the national agreement between local authority associations and NALGO that the rate of interest charged to local authority staff who receive council loans to assist them in purchasing cars used partly for their work should be raised by 1 per cent.; what percentage of interest is now chargeable to such officers for this purpose under the national agreement; and what are the approximate rates of interest now payable by local authorities under the Public Works Loans Board and for their commercial loans, as calculated for the purposes of rate support grant.
§ Mr. Freeson
These are matters for determination by local authorities.
Under the National Joint Council's scheme of Conditions of Service for Local Government Officers an employing authority may resolve that it is essential for the efficient conduct of the authority's business that an officer shall be permitted to use his private car in carrying out his official duties. In that event the authority may assist the officer to purchase the car by way of loan, and the officer must undertake to utilise the car 530W in the performance of his official duties as required by the employing authority.
The rate of interest charged on car loans, previously 9 per cent., was raised to 11 per cent. from 1st February 1977. The estimated average rate of interest payable by local authorities on all outstanding local government debt in the financial year 1976–77 and used as the basis of the 1977–78 rate support grant settlement was 10.38 per cent.