§ Mr. Lubbockasked the Chancellor of the Exchequer if he will extend the maximum period of repayment of loans granted by the Public Works Loan Board from 60 to 80 years.
§ Mr. du CannThe Public Works Loan Board will lend for whatever period a local authority is empowered188W to borrow. Where the loan repayment period under the Local Government Acts is 80 years, as it is for some purposes, the Public Works Loan Board would be willing to make a loan repayable over that period.
§ Mr. Lubbockasked the Chancellor of the Exchequer if he will rescind the practice of the Public Works Loan Board of requiring repayment of loans by annual instalments.
§ Mr. du CannThis is one of the points being considered in the current review of local authority borrowing. Legislation would be needed to rescind this requirement.
§ Mr. Lubbockasked the Chancellor of the Exchequer why the interest rate charged on loans by the Public Works Loan Board is kept at a level much higher than the gross redemption yields on Government funds of any redemption date; and if he will reduce the differential to a level sufficient only to cover the costs of administration.
§ Mr. du CannThe rate of interest charged on Public Works Loan Board loans is kept in line with the rate of interest local authorities have to pay on their market borrowing, so as to ensure that local authorities which borrow from the Public Works Loan Board are neither better nor worse off than those which borrow on the market. This is a necessary part of the present arrangements whereby the Public Works Loan Board only acts as lender of last resort to local authorities which cannot borrow on reasonable terms on the market. These arrangements are now under review.