HC Deb 24 November 1936 vol 318 cc221-2
48. Mr. DAVID ADAMS

asked the Chancellor of the Exchequer the number of applications made to the Special Areas Reconstruction Association, Limited, together with the total amount of the loans required, and also the number of the applications with the total amount of loans actually granted

Mr. CHAMBERLAIN

I am informed that the total number of applications received by the Association to date is 358, of which 65 were not within the scope of the Association and 104 were indefinite in character. The total amount of loans required cannot be stated as the applications are in many cases indeterminate on this point. The Association have up to the present agreed to grant 14 loans for a total of £52,300.

Mr. G. HALL

Can the right hon. Gentleman give the numbers for each of the Special Areas?

Mr. CHAMBERLAIN

If I have notice I think I probably can.

49. Mr. ADAMS

asked the Chancellor of the Exchequer whether he is aware that reputable companies situated in Special Areas and requiring loans for the expansion of their businesses, but which cannot raise sufficient guarantees in the usual way, are refused these facilities by the Special Areas Reconstruction Association unless they find substantial guarantees such as would be asked for by any ordinary finance house; and will he endeavour to remove this refusal to advance capital to such industries as being contrary to the spirit of the Special Areas (Reconstruction Agreement) Act, 1936?

Mr. CHAMBERLAIN

I am informed that, such guarantees are not required as a general rule, but that when circumstances make it necessary they may be asked for to ensure that the applicant has sufficient faith in the business proposed by him.

Mr. ADAMS

Owing to the unsatisfactory reply, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible moment?

Mr. LEES-SMITH

Will the right hon. Gentleman take note of Mr. Malcolm Stewart's very strong criticism of this Association in his third Report?

Mr. CHAMBERLAIN

I do not think that it would be a correct appreciation of what is said in the Report to call it strong criticism, but I have already stated that all the recommendations of the Commissioner are now being considered.