HC Deb 02 July 1953 vol 517 cc566-7
14. Mr. Peart

asked the Minister of Agriculture if he is aware that present credit facilities for farmers are inadequate to meet the needs of the food production drive; and what action he is taking.

Sir T. Dugdale

I have no reason to believe that, broadly speaking, the attainment of the objectives of the food production drive is being prevented by shortage of credit. I shall, however, continue to keep a very close watch on the situation.

Mr. Peart

Is the Minister aware that before the General Election his party, time and time again, promised to give credit facilities to small farmers, and that the Chancellor, in a speech which he made before introducing his Budget, promised to consider this matter sympathetically, and gave a firm declaration that he would do something about it? When can we have some action?

Sir T. Dugdale

I have answered the Question on the Order Paper. I think it is true that at present the increased production programme is not being held up by want of further credit, but I am watching the position all the time.

Mr. Baldwin

Is my right hon. Friend aware that credit-worthy farmers can get all the credit they want from the banks and from the traders, and that what farmers really want is to be able to keep a bit more of their hard won profits so that they can repay the debts they already owe?

Mr. Peart

Is the Minister aware that owing to the raising of the Bank rate, the interest rate of the Agricultural Mortgage Corporation was increased?

Sir T. Dugdale

It has now gone down again.

Mr. Peart

But not enough.