had given notice of the following question:—

43. To ask the Prime Minister whether he will state why the Treasury are insisting on local authorities taking up the total amount of their housing loan forthwith, seeing that this money bears interest at the rate of 6 per cent., and that, owing to the backward- ness of municipal building schemes, they are unable to make present use of this money and therefore are re-investing it in Treasury Bonds bearing interest at the rate of 6½ per cent.?

Since raising this question as a matter of urgency, last Thursday, I find that the Treasury have made arrangements to protect the taxpayer by raising the rate of interest to 6j per cent. Therefore I do not propose to ask the question.

The Chancellor:

of the EXCHEQUER (Mr. Chamberlain): I do not follow the explanation of the hon. Member, but there is no foundation for his original allegation.

Is it not a fact that on the evening of the day on the morning of which I put down the question, the Order was issued informing all municipalities that for the future the interest would be raised from 6 to 6½ per cent., so that they could not make a profit by shuffling with the Treasury?

Mr. CHAMBERLAIN:

No. That was not the question. The question was why the Treasury are insisting on local authorities taking up the total amount of the housing loan forthwith, and, as I have said, the allegation was without foundation.

The question was

seeing that this money bears interest at the rate of 6 per cent. and that, owing to the backwardness of municipal building schemes, they are unable to make present use of this money, and therefore are reinvesting it in Treasury Bonds bearing interest at the rate of 6½ per cent. Since that question has been put down, the Treasury have put up the interest at the rate of 6½ per cent., and, therefore, everything is all right.