Clause 40 - Loans by Public Works loan commissioners
Local Government Bill
10:33 am
Mr Edward Davey (Kingston and Surbiton, Liberal Democrat)
Although the Minister describes a very fair situation, he has not yet answered my question. Of course, council tenants' rent will go into the pot to pay for some of the costs. The question is whether they are contributing to the full debt servicing costs. In a supplementary note to the Transport, Local Government and the Regions Select Committee on the draft Local Government Bill, HC 981–111 of Session 2001–02, Ev 103, Lord Rooker said:
''Before the transfer the Housing Revenue Account subsidy system takes into account the full cost of servicing the authority's housing attributable debt''
Is that the position or is CIPFA right when it says that part of the tenants' rent is paying to service the debt?