§ Mr. Tony BanksTo ask the Secretary of State for the Environment if he will list all those local authorities which he knows to have entered into interest rate swap arrangements; and if he will make a statement.
§ Mr. Gummer[holding answer 6 March 1989]: The London borough of Hammersmith and Fulham recently sought my right hon. Friend's sanctions for certain payments and receipts due under interest rate swaps and I am aware from press and market reports that other authorities have entered into such arrangements. Individual authorities are not, however, required to inform my Department before entering into swaps and do not do so. Advice on the powers of local authorities to enter into swaps was circulated to all authorities by the Audit Commission last year. I am aware therefore neither of how many authorities have entered into these arrangements nor of how many have done so outside the guidelines on the powers of local authorities to enter into swaps which was circulated to all authorities by the Audit Commission last year.