HC Deb 10 February 1955 vol 536 cc2043-4
25. Mr. Osborne

asked the Chancellor of the Exchequer if he is aware of the inflationary pressure exerted by the recent increase in hire purchase; and what steps he proposes to take to check it.

Mr. Maudling

The extension of consumer credit can lead to increased production as well as increased consumption so that it is wrong to assume that the whole effect must be inflationary. I agree however that there are dangers: and my right hon. Friend is keeping a close watch on this as on other aspects of credit policy.

Mr. Osborne

Is my hon. Friend aware that the hire-purchase interest rates exceed 20 per cent., that this puts up the cost of the article, and it is helping to increase the cost of living? Will he take some steps to see that these exceedingly high interest rates are cut down?

Mr. Maudling

This is certainly an interesting point, but one must remember that in so far as hire purchase increases production it contributes to bringing down production costs.

Mr. Roy Jenkins

Is the Minister aware that we are most disturbingly short of statistical information as to what is happening in the hire-purchase field? Will he consult the Board of Trade about obtaining figures for the whole field, similar to those which are obtainable in respect of the motor car industry, so that we can see what is happening?

Mr. Maudling

I do not think that it will be easy to collect the information, but I will examine the question.