HC Deb 19 May 1953 vol 515 cc1845-6
1. Mr. Boothby

asked the Chancellor of the Exchequer whether he will make the necessary arrangements for an extension of the period of credits granted by the Export Credits Guarantee Department in respect of cured herring, mackerel and pilchard for the State of Israel, from six months to 12 months.

The Chancellor of the Exchequer (Mr. R. A. Butler)

I do not think that guarantees for such an extended period of credit would be justifiable in present circumstances.

Mr. Boothby

Is my right hon. Friend aware that Israel needs food with a high nutritional content and that our need for markets for this fish during periods of glut, which are inevitable, is also very great? Surely failure to match these two requirements for a further period of six months is not very wise?

Mr. Butler

There is already a period of six months for the credit, which seems to me to be appropriate for consumable commodities, and that is as far as the Export Credits Guarantee Department can go. I realise the importance of the trade and the needs of Israel and am certainly ready to watch the situation, but I must state the position as I see it.

Mr. Beresford Craddock

Does not my right hon. Friend agree that, in general, it is a bad policy to conduct business on extended credits?

Mr. T. Williams

If the herring industry are unable to find a market for their products, surely the Treasury must subsidise their catch?

Mr. Butler

The answer to the right hon. Gentleman is that very reasonable credit in respect of herrings is already provided under existing circumstances. I think my hon. Friend the Member for Spelthorne (Mr. Beresford Craddock) has been answered by the right hon. Gentleman.

Mr. Gaitskell

Will the right hon. Gentleman tell us whether there has been any approach from the Government of Israel inviting us to give longer credits?

Mr. Butler

I am not personally aware of such an approach, although I should not like to say that there had not been one, but I will certainly investigate this on returning to my office.

Mr. Boothby

I beg to give notice that I shall raise the matter on the Adjournment.