§ 73. Mr. LIDDALLasked the Minister of Agriculture whether he has considered the scheme which has been submitted to him which would provide, through the Agricultural Mortgage Corporation, loans at the rate of 3½ per cent. interest; and whether he is prepared to adopt the proposals outlined in the scheme?
§ Mr. W. S. MORRISONThe scheme referred to would involve financial assistance from the Exchequer in order to release borrowers from the Agricultural Mortgage Corporation from one of the terms on which they contracted their long-term loans, and I regret that I cannot see my way to adopt the proposal.
§ Mr. LIDDALLWill the right hon. Gentleman not make proposals to the Agricultural Mortgage Corporation urging it to adopt a scheme providing cheap credit for farmers?
§ Mr. MORRISONMy hon. Friend asked me about proposals. I told him they could not properly be carried into effect without financial aid from the Exchequer, and he and the House will appreciate that if one class of borrowers were granted aid, it would be very difficult to resist granting similar aid to others, which would involve a very large sum.
§ Mr. LIDDALLWas it not contemplated by Parliament that cheap credit should be given to the farmers?
§ 74. Mr. LIDDALLasked the Minister of Agriculture whether, in view of the fact that the Agricultural Mortgage Corporation have the sum of approximately 1437 £1,800,000 available for loans to agriculturists and that less than £500,000 was let out on loan for the year ending 31st March, 1936, he will make representations to the board with a view to a lower rate of interest than 4½ per cent. being charged for these loans?
§ Mr. W. S. MORRISONThe Agricultural Mortgage Corporation is prepared to lend at a basic interest rate of 4½ per cent. money that was raised by Debenture Stock issued at from 4½ per cent. to 5 per cent. This stock cannot be redeemed before 1959, and it can only be purchased in the open market at the present time at a considerable premium. I regret that, in the circumstances, I am unable to adopt my hon. Friend's suggestion.
§ Mr. LIDDALLIs not the right hon. Gentleman aware that nearly £2,000,000 is invested in securities bringing 3 per cent. which would be acceptable to farmers on loan at, say, 3½ per cent.?
§ Mr. MORRISONThis scheme was floated at a time when interest rates were higher than they are at present, and we could not adopt the proposal without Exchequer grants. As I said in reply to my hon. Friend's previous question, if such assistance from the public funds were given to one class of borrowers, it would not be possible to refuse it to others, and the charge on the Exchequer might be very great.