§ Major Carverasked the Financial Secretary to the Treasury (1) in how many cases during the past three years the Public Works Loans Board have agreed to a reduction in the interest charged on loans made to agriculturists under the Public Works Loans Acts; (2) whether he is aware that farmers are still paying 5 per cent. interest for loans obtained under the Public Works Loans Board when the purchase of their farms took place; and whether, in view of the rise in farm costings, he will approach the proper authorities to get the rate of interest reduced to 4 per cent, as being more in keeping with present financial conditions?
§ Captain WallaceThe Public Works Loan Boarsd have no responsibility for rates of interest charged upon loans from the Local Loans Fund. The rates to be charged on new advances are fixed from time to time by the Treasury and are such as in their opinion are sufficient to enable the loans to be made without loss to the Fund. The liability of the State to ensure the payment of interest on Local Loans Stock is a continuing liability not affected by current monetary conditions, and a reduction in the rate of interest on existing loans would involve a State subsidy to enable the Fund to meet its obligations. Farmers who borrowed under the Agricultural Credits Act, 1923, are allowed to repay their outstanding loans if they wish without premium, the cost being borne on the Vote for the Ministry of Agriculture, but I regret that no extension of this exceptional arrangement could be entertained.