Public Works Loans (Interest).

Oral Answers to Questions — Transport. – in the House of Commons on 10th July 1922.

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Photo of Mr William Thorne Mr William Thorne , West Ham Plaistow

71.

asked the Financial Secretary to the Treasury if he can state the amount of interest that the National Debt Commissioners charge for money loaned to the Public Works Loan Commissioners, and what amount of interest the Public Works Loan Commissioners charge the various local authorities upon money loaned by them to the various local authorities?

Photo of Mr John Baird Mr John Baird , Rugby

The money which the Public Works Loan Commissioners lend is provided by the issue of Local Loans Stock, and the rate of interest which they charge to borrowers is governed by the price at which Local Loans Stock is issued. The last issue of Local Loans Stock, out of the proceeds of which advances are now being made to borrowers, was made at the price of 57 per £100 stock, making the cost to the Local Loans Fund rather over 5¼ per cent. The main rate for loans granted by the Public Works Loan Commissioners is at present 5½ per cent.

Photo of Mr William Thorne Mr William Thorne , West Ham Plaistow

As the bank rate is reduced, will local authorities in future be able to borrow money at a lower interest than they are paying now?

Photo of Mr John Baird Mr John Baird , Rugby

I cannot tell that. The interest has been going down.