§ Mr. NellistTo ask the Secretary of State for the Environment what was the result of his meeting at the beginning of December with the Local Authorities Association regarding initial proposals in his recent consultation paper to impose the equal instalment of principal method for repaying local authority debt; whether the alternative proposal of a fixed percentage repayment scheme has superseded his original, preferred method; and if he will make a statement.
§ Mr. RidleyThe consultation paper issued by my Department on 7 July 1988 proposed that local authority credit liabilities should in future be amortised by charges to revenue account using the "equal instalments of principal" method. At a meeting on 29 November with representatives of the main local authority associations, I undertook to seek their views on an alternative method known as the "reducing balance" method. I am sending to the hon. Member a copy of the official letter dated 2 December by which that undertaking was discharged.