§ 56. Mr. Hurdasked the Chancellor of the Exchequer if he gave his approval to the higher rate of interest now fixed by the Agricultural Mortgage Corporation for new loans to landowners who are undertaking the improvement of cow-houses and other farm buildings; and if he will give an assurance that restrictions will not be placed on capital expenditure needed to ensure full and economical food production.
§ Sir S. CrippsThe Agricultural Mortgage Corporation informed me of the proposal to raise the rate of interest for new loans from 3½ per cent. to 4 per cent., and the Minister of Agriculture and I are satisfied that this was advisable. This increase—which applies to all new loans made by the Corporation—will enable it to meet the demands made on it for long-term credit.
§ Mr. HurdOn what grounds did the Chancellor consider it appropriate to raise this rate of interest to 4 per cent. when landowners are expected to find £25 million for necessary improvements?
§ Sir S. CrippsOn the ground that we were not prepared to subsidise landowners through the Corporation more than to the extent of £150,000 a year.