HC Deb 25 June 1957 vol 572 c14
22. Mr. Cronin

asked the Chancellor of the Exchequer if he will modify his request to the Capital Issues Committee on 9th April, 1957, to restrict bank loans for long-term investment, in view of the difficulties now being experienced by companies who usually finance their fixed investment by renewable overdrafts.

Mr. P. Thorneycroft

No, Sir.

Mr. Cronin

Is the Chancellor aware that the banks can just as easily lend the same money for purposes which do not come within the purview of the Capital Issues Committee? Therefore, what is the purpose of this rather tiresome restriction?

Mr. Thorneycroft

The hon. Gentleman will have gathered from some Questions of his colleagues that they are interested in the cost of living, and one way of putting up the cost of living is to attempt large-scale capital investment unmatched by savings.