47. Mr. De la Bèreasked the Minister of Agriculture whether, in view of the very small volume of business which has been transacted under the Agricultural Requisites Scheme since the outbreak of hostilities, he will consider steps to increase the volume of transactions, and, as a first step, consider a reduction in the interest charge to borrowers under this scheme?
Mr. HudsonNo, Sir. The Agricultural Requisites Assistance Scheme was introduced to assist farmers who were unable to obtain credit from other sources. The fact that the total assistance given under the Scheme is small is no reason for thinking that it is not adequately fulfilling the purpose for which it was designed.
Mr. De la BèreIs the Minister aware that the lack of success of this scheme, and indeed, of all schemes, is primarily due to the high charges made by banks, and why cannot they make a reduction from 5 percent. to 3 percent., as it is all-important that something should be done in the country without further delay?
Mr. HudsonThere is the alternative reason, which, I think, is the true one, that banks are providing in the vast majority of cases the necessary credit, and those farmers who are able to get the necessary credit do so.
Mr. De la BèreBut my right hon. Friend will appreciate that the banks are still charging 5 percent., and that there is no possible excuse for that?