HC Deb 17 November 1932 vol 270 c1282
24. Captain TODD

asked the Financial Secretary to the Treasury whether, with a view to relieving the financial strain on the agricultural community, he will consider taking steps to reduce the high interest at present paid under the Agricultural Credits Act, 1923, or granting a moratorium on capital redemption under the same Act?

Mr. HORE-BELISHA

Advances made by the Public Works Loan Commissioners under the provisions of the Agricultural Credits Act, 1923, were made out of money raised by the issue of Local Loans Stock. That stock could only be redeemed at a heavy capital loss, and so long as it remains unredeemed His Majesty's Government are bound to continue to pay interest upon it at the same rate as when the money was originally borrowed. I am, therefore, unable to hold out any hope that the rate of interest charged upon these advances will be reduced. As regards the last part of the question I understand that it is the practice of the Public Works Loan Commissioners to show consideration to individual debtors in cases of exceptional hardship.

Captain TODD

In view of the fact that the nation supported the Government in the recent 3½ per cent. conversion, does not the hon. Gentleman consider that 5½ per cent. is an exorbitant percentage for a distressed industry to have to pay?

Mr. HORE-BELISHA

I do not know that my view would differ from that of my hon. Friend, but the fact is that he is inviting the taxpayer to come to the assistance of this fund, and therefore is asking him to make even greater sacrifices.