asked the Minister for Finance whether in view of statements in part two of the Second Programme for Economic Expansion with regard to (a) the desirability of a large productive element in public capital expenditure, (b) the need for continued investment of a social character, not directly remunerative in financial terms, and (c) the fact that charges for debt service in 1963-64 amounted to £27.1 million, he will take steps to ensure that the capital needs of the State and local authorities for social investment are made available at nominal rates of interest.
Ceisteanna—Questions. Oral Answers. - Social Investment Capital.
7.
In common with other borrowers the State and local authorities would be anxious to borrow for all purposes at the lowest possible rates. Interest rates are, however, determined by prevailing conditions on the capital market including the availability of resources for lending and the particular attractiveness of alternative methods of disposing of such resources. The scope for Government action to reduce the cost of its borrowing is limited by these factors.
So far as local authorities are concerned the burden is lightened by the considerable contributions made from State funds towards the interest and capital repayment charges incurred on capital expenditure of a social nature.