HC Deb 15 December 1947 vol 445 c1460
59. Mr. Edward Evans

asked the Minister of Agriculture what facilities are available to farmers to borrow money for working and development purposes; and at what rates of interest.

Mr. T. Williams

The banks are regarded as the normal source of farm credit in this country, and have ample funds available for the purpose. I understand that the rate of interest varies between 4 and 5 per cent., most small overdrafts being charged at the higher rate. These facilities are supplemented in suitable cases by the Ministry's agricultural goods and services scheme under which farmers may obtain credit for the supply of goods and certain services.

Mr. Evans

Can the right hon. Gentleman indicate the conditions attaching to these loans?

Mr. Williams

It the hon. Gentleman refers to conditions attaching to loans and mortgages advanced from banks, I am afraid I cannot say what they are.

Mr. Evans

Have the farmers any greater advantage than they had before the announcement?

Mr. Williams

The advantage, if any, is that we are continuing the goods and services scheme through county executive committees, which is very useful to many small farmers.

Mr. Assheton

Is the right hon. Gentleman aware that the real difficulty for farmers is paying back the money they borrowed because, owing to the high rate of taxation, when they do make a profit it is taken from them, and they therefore do not have the money to repay the loan?

Mr. Williams

I do not readily accept that.