Mrs. Whiteasked the Secretary of State for the Colonies if his attention has been drawn to the effect of present interest rates on the work of the Colonial Development Corporation; and if he will make a statement.
§ Mr. Lennox-BoydI have had correspondence with Lord Reith on this point and have noted the reference in the Corporation's Annual Report. The rates of interest charged to the Corporation on advances from public funds are based on Government credit, and arc therefore kept in step with the cost of Government credit in the market. There is no warrant in the Overseas Resources Development Acts for charging a lower rate.
It is not possible to judge how far the recent rise in rates will affect the Corporation's work. I shall naturally watch this, but the hon. Member will understand that the general rise in rates is an essential element in the Government's monetary policy which, by helping to strengthen sterling and increase our ability to invest abroad. should improve the prospects for colonial development.
51. Mrs. Whiteasked the Secretary of State for the Colonies if he will take steps to deal with the Special Losses Account of the Colonial Development Corporation on the lines proposed in the latest Annual Report.
§ Mr. Lennox-BoydI am always ready to examine any proposals of the Corporation, but a somewhat similar proposal was considered about two years ago but not pursued for the reasons explained in the C.D.C. Report, 1953. p. 5. While I will certainly look at it again, it would be misleading the House and the C.D.C. if I held out hope that I shall now he able to come to a different conclusion.
§ 66. Mr. J. Johnsonasked the Secretary of State for the Colonies when he will introduce validating and enabling legislation regarding past, present and future activities of the Colonial Development Corporation in housing and road building.
§ Mr. Lennox-BoydLegislation will be introduced during the current Session.