§ 9. Lord Malcolm Douglas-Hamiltonasked the Chancellor of the Exchequer whether he will add temporarily to our external debt by Government borrowing for development in the United Kingdom, since by so doing he will improve Britain's long-term financial position.
§ Mr. MaudlingI regret that I have nothing to add to my right hon. Friend's answer of 20th January.
§ Lord Malcolm Douglas-HamiltonDoes not the hon. Gentleman think that, following the Prime Minister's recent strong plea for more home food production, there is evidence from Questions in this House that there are hundreds of thousands of acres of land that would be available for agriculture if reclaimed by drainage; and in view of the presence of the President of the International Bank in this country is it not an appropriate moment for Her Majesty's Government to reconsider their policy in regard to applications for World Bank facilities for internal development?
§ Mr. MaudlingMy right hon. Friend does not consider that external borrowing for purposes of internal development is in the long-term interests of the United Kingdom.
§ 10. Lord Malcolm Douglas-Hamiltonasked the Chancellor of the Exchequer whether he is aware of the continuing difficulties caused by credit restrictions
1425 which tend to vitiate enterprise in the Highland area, and which, despite Government assistance, prevent Highland agriculture and stock rearing from making their full contribution to the British economy; and what further action Her Majesty's Government are taking to assist in Highland development.
§ Mr. MaudlingThe Government assistance to which my hon. Friend refers has done much to encourage enterprise in the Highlands. The number of applications for improvement schemes under the Livestock Rearing Act, 1951, has been most encouraging and we have no reason to think that any further action is needed towards making credit available for the development of this area for agriculture or stock-rearing.
§ Lord Malcolm Douglas-HamiltonDoes not my bon. Friend think that, in view of the fact that depopulation is still going on in the Highlands, and since the Government have shown their willingness for colonial development by making £60 million available for such purposes, he might bear in mind that there is a large area of the Commonwealth within these shores which could give as fruitful and economical return to Britain by development as other parts of the Commonwealth?
§ Mr. MaudlingThe Livestock Rearing Act, 1951, made up to £20 million available for the Highlands for this purpose. I am glad to say that the annual number of applications under the Act from the crofter counties has increased from 73 in 1950 to 169 in 1952, which shows that the facilities under the Act are being used.
§ Mr. Emrys HughesIs the Minister aware that Scottish banks made very big profits last year? Could he not advise them to plough some of those profits back into the Highlands?
§ Mr. MaudlingI am aware that my right hon. Friend answered that supplementary question on 20th January.
Mr. McKieIs my hon. Friend aware that there are parts of Scotland where the credit restriction policy now being pursued is having a very hampering effect?
§ Mr. MaudlingI should hesitate to enter into competition with Scotsmen in regard to these questions.
§ Mr. ManuelIs not the Minister aware that in Scotland generally, and in the Highlands in particular, we are losing much agricultural development and stock rearing possibilities because of the lack of capital development for roads, ferries and piers, and works of that kind, and that the hon. Gentleman should not consider his job finished, so far as stock rearing or agricultural production are concerned?
§ Mr. MaudlingThe Question on the Paper refers to credit restriction. My answer was that so far as we could ascertain it was not at present a limiting factor.
§ Colonel Gomme-DuncanIs my hon. Friend aware that there is a firm impression in Scotland, which I think is justified, that credit facilities have been given to schemes which are of less urgent importance than some of those which have been turned down for lack of credit?
§ Mr. MaudlingI should be glad to examine any evidence on that point which my hon. Friend may have.
§ Lord Malcolm Douglas-HamiltonIn view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek an early opportunity to raise the matter.