HC Deb 08 March 1956 vol 549 cc2300-1
30. Mr. Gordon Walker

asked the President of the Board of Trade whether he is aware of an increase in the disposal by retailers of radio and television sets on credit-sale agreements for less than nine months; that this is defeating the purpose of the restrictions he has imposed upon hire-purchase and hiring agreements; and what steps he is taking to make his restrictions effective.

Mr. P. Thorneycroft

I am aware that some retailers are offering to dispose of radio and television sets on credit-sale agreements for less than nine months, but I do not agree that such sales defeat the purpose of the restrictions. I have recently amended the conditions under which these agreements are permitted to ensure that the restrictions are effective.

Mr. Gordon Walker

Is not the right hon. Gentleman aware that it is possible, under these agreements, for television sets and such goods still to be sold for a very small initial down-payment, whatever the merits of the general policy of hire purchase? Is it not stupid to leave this hole or gap, through which is now being done more and more business of the sort that the right hon. Gentleman was trying to stop?

Mr. Thorneycroft

I am anxious to stop up any gap, but there does not seem to be one here. The object of the hire purchase controls is to compel people either to pay the whole price down or at any rate to restrict themselves to credit sale agreements for under nine months.

Mr. Lindgren

Is the right hon. Gentleman aware that some manufacturers are already offering a loan for the initial deposit, to be paid off by weekly payments? Where are we getting to?

Mr. Thorneycroft

I am quite willing to examine any point which the hon. Gentleman may put to me about obvious evasions but the point raised by the right hon. Gentleman is not an evasion. It is an ordinary credit sale under nine months and has never been caught by any hire-purchase restriction.