Hire Purchase

HC Deb 28 April 1960 vol 622 cc381-2

22. Mr. Dodds

asked the President of the Board of Trade what was the total amount of hire purchase at the last convenient date; how this compares with a similar date in 1959; by how much it has increased since 1st January, 1960; and what consideration has been given to keeping the transactions in this sphere within reasonable proportions.

Mr. Maudling

Hire purchase debt at the end of February, 1960, is estimated to have been £889 million compared with £596 million at the end of February, 1959; and it increased by £32 million in the two months since 1st January, 1960. The Government keep the amount of private credit extended in this and other ways under review, and are ready to take such steps as may be necessary to keep it within reasonable proportions.

Mr. Dodds

Does the right hon. Gentleman appreciate that, as a consequence of the threat in the speech of the Chancellor of the Exchequer on 4th April, the stock markets have been affected ever since, and that there is a very, disturbing influence amongst shopkeepers, who really feel that the Government must make up their mind about this and not appear to take delight in tantalising people on a matter of great importance?

Mr. Maudling

I appreciate the hon. Member's concern for the Stock Exchange, though I think it may be a little exaggerated. So far as retail trade is concerned, I cannot believe that such uncertainty in the retail trade exists, at the moment. I think it is going very well indeed.

Mr. Mitchison

What proportions has the right hon. Gentleman in mind, and on what basis does he arrive at them?

Mr. Maudling

By calculations of judgment.

Mr. Osborne

Could my right hon. Friend say how far he thinks this £300 million increase in the hire-purchase debt in this country is sucking goods into the home market which ought to be exported, and how far is it affecting our balance of payments position? Does he not think that something ought to be done pretty quickly about it?

Mr. Maudling

I think it is certainly having some effect, although it is impossible to estimate how much. I believe that there is a later Question on the Order Paper to my right hon. Friend the Chancellor of the Exchequer on these matters.