HC Deb 02 May 1955 vol 540 cc1321-2
7. Mr. Snow

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the total indebtedness to banks of the farming community in connection with their farming operations; and what estimates he has made in respect of each of the preceding four years.

Mr. Amory

From figures published by the joint stock banks, my Department estimates that the total of advances outstanding to farmers in the United Kingdom was £171 million in February, 1951, and £191 million, £187 million, £209 million and £214 million in subsequent Februaries up to 1955. It is further estimated that 55 to 60 per cent. of these sums represents indebtedness on account of farming operations.

8. Mr. Snow

asked the Minister of Agriculture, Fisheries and Food what estimate he has made of the total indebtedness of the farming community in respect of hire-purchase agreements for implements and stock; and what estimates he has made in respect of each of the preceding four years.

Mr. Amory

Such statistics as are available are supplied by the trade and relate only to sums owing on hire-purchase agreements for machinery and implements purchased in the year in question. They are as follows: 1950–51—£3. 5 million, 1951–52—£3. 75 million, 1952–53—£3. 6 million, 1953–54—£4. 2 million and £1954–55—£4. 5 million.

Mr. Snow

Do not these figures given in the answers to this and the preceding Question represent proof that the agricultural policy of this Government has landed the farming community more and more in indebtedness?

Mr. Amory

I think what they do show is that the increased turnover which the industry has been making is being financed.

Sir W. Darling

Do not the figures show that, contrary to what is frequently asserted, the banking industry is giving the fullest possible support to agriculture?

Mr. Amory

I think they also show that.

Mr. Harold Davies

Is the right hon. Gentleman not aware that the facilities of the great banking industry to farmers are being paid for at a very high price indeed, and that apparently the policy of the Government in increasing the Bank Rate is limiting the initiative of the small farmer who wants short-term loans or hire-purchase implements?

Mr. Amory

On the other hand, the movements of the Bank Rate are designed and are proving to be very much in the interests of the economy as a whole, including the interests of agriculture.