Mr. MACLEANasked the Chancellor of the Exchequer whether he has received any representations from any borough in Scotland, which is issuing housing bonds, to reduce the rate of interest on these bonds; whether he is aware that the bank rate on overdrafts is 4 per cent., thereby making it possible for borrowers to get money from the bank at this rate of interest and lodge it with the municipality at the higher rate; and whether, in view of this possibility, he will authorise the municipalities to pay interest on housing bonds at the same rate as that paid upon bank overdrafts?
Mr. YOUNGI have received no recent representations with regard to the rate of interest on new issues of local Housing Bonds, which is now 5 per cent. I do not think the hon. Member is correct in1720W what he says as to the effect of bank rate. In any case, the rate for temporary overdrafts has little relation to the rate for bonds with a currency running over a period of years.