§ 53. Mr. Marloweasked the Chancellor of the Exchequer what is the policy of the Treasury with regard to bank advances intended to finance hire-purchase agreements; in what circumstances such advances are restricted as being inflationary and what steps are taken to control the use of funds for such purposes.
§ Mr. GaitskellI would refer the hon. and learned Member to my answer of 5th December to the hon. Member for Barnet (Mr. Maudling). Both my predecessor and I have been content to leave to the discretion of the banks the application of the policy which they have been asked to pursue.
§ Mr. MarloweIs it not the case that the banks have had a directive from the Treasury asking them not to advance money for hire-purchase agreements, and will he inquire why the British Electricity Authority has completely flouted Government policy in this matter? Is the right hon. Gentleman aware that the British Electricity Authority's Report was that, while their cash sales had been reduced considerably, their hire-purchase contracts had increased enormously?
§ Mr. GaitskellThe hon. and learned Gentleman's question was about hire-purchase credit advanced by the banks. If he wants to ask a question about the British Electricity Authority, which is not necessarily connected with the banks at all, perhaps he will put it down.
§ Mr. MarloweDoes the right hon. Gentleman suggest that in a matter of this kind there is one law for the banks and another for a nationalised industry?
§ Mr. GaitskellWe are discussing credit policy in one case, and, in the other case, we would be discussing something quite different.
§ Commander NobleThe right hon. Gentleman told me before Christmas that he would look into this matter. Can he say whether any progress has been made?
§ Mr. GaitskellI have discussed this matter with the Governor of the Bank, and I am satisfied that the request to the banks has been faithfully carried out.