HC Deb 09 December 1959 vol 615 cc693-4

(1) Where in the case of any undertaking a loan has been made under this Act, section four of the Distribution of Industry Act, 1945, or that section as extended by the Distribution of Industry (Industrial Finance) Act, 1958, and the Board are satisfied, in accordance with recommendations of the committee constituted for the purposes of sections three and four of this Act, that with a view to enabling all or part of the moneys lent to be recovered it is expedient to provide further financial assistance for the purposes of the undertaking, the Board may provide such further assistance of such amount and on such terms and conditions as may be recommended by the committee.

(2) Subsection (2) of section four of this Act shall apply in relation to recommendations under this section.—[Mr. Erroll.]

Brought up, and read the First time.

Mr. Erroll

I beg to move, That the Clause be read a Second time.

This Clause empowers the Board of Trade, in accordance with the recommendations of the advisory committee which recommends the giving of loans under Clause 4, to make further loans to the recipients of loans under that Clause where the making of the further loan or loans will improve the prospects of getting the original loan repaid.

In short, to use telegraphese, the object of the new Clause is to enable the Board of Trade to make loans to save loans. This is not a novelty, because the Treasury has exercised similar powers under the 1945 and 1958 Acts, but the precise wording of the Clause makes it possible for us to do it under the new conditions envisaged by the Bill.

Question put and agreed to.

Clause read a Second time and added to the Bill.

The Chairman

Mr. Jay.

Mr. Jay

I do not propose to move the Second Reading of the new Clause with the rubric, "Application of principal enactment to officers". I take this course in the hope and expectation that we shall be able to move it later, on Report. I am bound to say that that is on the assumption that reasonable time is given for discussion of these many important matters when we reach Report stage.