§ Mr. Fallonasked the Chancellor of the Exchequer if there has been any change in the policy of the Public Works Loan Commissioners in regard to their lending to local authorities.
§ Mr. LawsonIn their circular No. 76 issued today the commissioners have made it plain that there is no change in their lending policy. They expect to continue to make loans available on the terms described in their circulars to any local authority having a valid power to borrow. The commissioners could not lend to an authority which had chosen to act illegally and, more widely, they have a statutory obligation to satisfy themselves, before advancing a loan, that an authority is able to service and repay the loan.