§ 45. Mr. DIXEYasked the Prime Minister whether, in view of the grave position of the agricultural industry at the present time, the Government are considering the question of long-term credits with regard to the same or any other policy?
§ The MINISTER of AGRICULTURE (Mr. Guinness)I have been asked to reply. The Government policy towards agriculture is set out in the White Paper issued in February, 1926, and includes the provision of long-term credit. Negotiations with a view to framing a suitable credit scheme are still in progress.
§ Mr. T. WILLIAMSWere these negotiations not in progress even before the King's Speech in 1926; and cannot the right hon. Gentleman tell the House, after 18 months' negotiations, when the Government are likely to come forward with their proposals?
§ Mr. GUINNESSI answered a question on the subject last week. The matter was taken up last year and was interrupted owing to the industrial trouble. We are taking it up again this year and will announce our conclusions as soon as possible.
§ Mr. WILLIAMSIs it a fact that the bankers are standing in the way of the credit facilities originally intended by the present Government?
§ Mr. GUINNESSI do not think it would be fair to say that they are standing in the way. They have pointed out certain difficulties and they, as well as we, are now concerned in surmounting those difficulties.
§ Mr. MACQUISTENIf the industry is not paying, is there any advantage from credits without some guarantee of better prices for the produce and better methods of selling it?
§ 29. Lieut.-Colonel RUGGLES-BRISEasked the Minister of Agriculture why no further applications are being entertained for advances by way of mortgage to persons who purchased their farms 1635 between 5th April, 1917, and 27th June, 1921; and whether, in view of the fact that the Agricultural Credits Act, 1923, provides that such applications may be made within five years from 31st July, 1923, he will continue to entertain further applications in accordance with the terms of the Act?
§ Mr. McNEILLI have been asked to reply. The operation of the Agricultural Credits Act was restricted not only as to time but as to the aggregate amount of loans which requires to be approved by the Treasury. A very large measure of assistance has already been given, and in view of the extremely heavy demands upon the Local Loans Fund for housing at the present time it is not considered desirable to extend the limit of £5,000,000 already fixed.
§ Lieut-Colonel RUGGLES-BRISEIs the right hon. Gentleman aware that under the terms of the Financial Resolution for that Act there was no limitation imposed as to the amount that might be advanced?
§ Mr. McNEILLYes, but there is a discretion given.