asked the Chancellor of the Exchequer what is the present outstanding debt of the Commonwealth of Australia to the British Exchequer; what is the rate of interest paid thereon; and what is the rate at which loans are made at present to British local authorities enjoying most-favoured treatment by the Debt Commissioners?

Mr. GUINNESS:

The outstanding debt now amounts to £88,097,604: of this £1,203,473 bears interest at 3½ per cent., £10,956,619 at 4½ per cent. and £75,937,511 at 5 per cent., rates corresponding to the cost at which the money was raised. The minimum rate of interest charged on loans to local authorities from the Local Loans Fund is at present 4¾ per cent.

Is that a reason why one of the Dominions of the Empire should pay a higher rate of interest than that at which the Government can raise the money?

Mr. GUINNESS:

The interest is dependent on the cost of raising the money at the time.

Cannot it be reraised at the rate at which we are now lending to local authorities?

Mr. GUINNESS:

The rate when these loans were raised was very different from the rate which now obtains.

Is interest being paid?

Mr. GUINNESS:

Interest is being paid on the Dominion loans, and also sinking fund.