HC Deb 09 July 1940 vol 362 cc1077-9
51. Mr. De la Bère

asked the Chancellor of the Exchequer whether, in connection with the advances to agriculturalists by the clearing banks, which amounted in the aggregate to about £53,000,000 in the middle of February, 1940, he has any information as to the average rate of interest that is being charged by the banks for this accommodation?

Sir K. Wood

I cannot say what is the average rate, but I understand that in most cases the banks' charge is from 4 per cent. to 5 per cent.

Mr. De la Bère

Does not my right hon. Friend realise that it becomes clearer and clearer that there is not the least possible excuse for charging 5 per cent. to borrowers, especially agricultural borrowers who are being exhorted to obtain the maximum from their land? Why should they give everything and the banks nothing?

Mr. Stokes

Is not this a complete example of what I have been saying?

Mr. Shinwell

Is not this the same question as I have already put to the Chancellor? Cannot he understand the point?

Mr. De la Bère

Will my right hon. Friend try to get away from this frustration and obstruction and make some genuine endeavour, because if he does not, he will forfeit all right to public confidence?

52. Mr. De la Bère

asked the Chancellor of the Exchequer whether, in connection with the decision which has been communicated to the British Bankers Association by the Governor of the Bank of England, providing for a maximum of 1 per cent. on deposit rates, he will confer with the Governor of the Bank of England with a view to securing that the British Bankers Association should agree to restrict the charges made for loans to agriculturalists and other businesses engaged on work of national importance to 1 per cent. above the existing Bank Rate?

Sir K. Wood

No, Sir. Such charges must obviously depend upon the conditions of individual cases, and it would not be possible to lay down maximum interest rates in every instance.

Mr. De la Bère

Is not this exactly the same point as I have previously made? Will my right hon. Friend really take this matter seriously? Is he not fully aware that he will lose all public confidence if he sits down and laughs at these serious matters?

Sir K. Wood

I should like my hon. Friend to realise that I do take the matter seriously, but obviously the rates of interest must depend upon the circumstances of each case.

Mr. De la Bère

Is not this matter long overdue for overhaul? In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter on the Adjournment at the earliest possible moment.