§ 36. Mr. Shortasked the President of the Board of Trade whether he will vary the recent hire-purchase restrictions on a regional basis so that the employment position in the north-east of England is not affected.
§ Mr. J. RodgersNo, Sir. To have varying degrees of restriction according to the locality in which the hire-purchase transaction took place would be quite impracticable.
§ Mr. ShortWill the hon. Gentleman say why this cannot be done? If this instrument is to be used to deal with inflation, cannot the Government apply it a little more selectively and intelligently instead of indiscriminately to the whole country? Is he aware that before the Chancellor's action there was a high level of unemployment in the North-East 1169 and that this has increased considerably in furniture making and other trades as a result of these restrictions?
§ Mr. RodgersHire-purchase restrictions like Purchase Tax must go with the goods and not with the locality in which the sales take place. The effect of the release of any one area would inevitably lead to transactions being carried out in the exempt area so as to escape the incidence of the control. This would inevitably weaken the present measures which are to stabilise the economy.
§ Mr. ShortIf that is the case, cannot the Government apply it selectively as between trades to help the furniture-making and other industries where there is increasing unemployment in the North-East and elsewhere as a result of Government policy?
§ Mr. RodgersNo. What we can do is to steer industries, as the hon. Member knows we are doing, to the area.