§ Mr. ORMSBY-GOREasked the Chancellor of the Exchequer whether he proposes to fix definitely the rate of interest on loans from the Public Works Loan Commissioners to County Councils for the purposes of the Land Settlement Act, 1919; whether he will issue instructions to the Public Works Loan Board that such a policy is the intention of the Government; and whether a proviso will be inserted in the terms of the mortgage contract between the County Councils and the Public Works Loan Commissioners to the effect that, in the event of the Treasury fixing the rate of interest to be paid in respect of sums borrowed by the County Councils before the 31st December, 1920, at some rate other than five and a half per cent., the County Councils will pay and the Public Works Loans Commissioners will accept interest at the rate fixed by the Treasury for the whole period of the loan?
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§ Mr. BALDWINThe mortgage already contains a provision that the loans will be repayable at such rate as may hereafter be fixed by the Treasury, and the Public Works Loan Commissioners, who are acting at the request of the Treasury in the matter, inform applicants that the rate at present charged is provisional and will be revised when a permanent rate can be fixed, the revised rate to run from the commencement of the loan. I see no reason to alter the terms of the mortgage. I am well aware of the desirability of fixing a permanent rate, and I hope that market conditions will enable the rate to be fixed before very long.