§ Dr. Lynne JonesTo ask the Secretary of State for the Environment, Transport and the Regions what rates of interest Burnley borough council and Coventry city council were paying on debts redeemed under the arrangements for stock transfer; and what interest rates are expected to be paid on the new investment being raised by the successor bodies. [136817]
§ Mr. MullinFor the purpose of calculating interest on notional Housing Revenue Account (HRA) debt, an individual Consolidated Rate of Interest (CRI) is calculated238W for each authority. The CRI is a weighted average of actual interest payable on external debt during the year and notional interest on—or the opportunity cost of—internal debt. In the case of Burnley borough council and Coventry city council, the most recent CRI prior to their stock transfers were 6.85 per cent. and 8.37 per cent. respectively.
The methodology for an authority to determine the proportion of debt repaid as a consequence of its stock transfer was announced to the House by my hon. friend the Minister for Housing and Planning on 16 November 1999, Official Report, column 250W. The actual amount of debt repaid is a matter for Burnley borough council and Coventry city council.
The rates of interest payable by the successor Registered Social Landlords (RSLs)—Burnley and Padiham Community Housing, Whitefriars Homes North Ltd. and Whitefriars Homes South Ltd.—are a commercial matter for each organisation.