§ 32. Mr. Soamesasked the Minister of Agriculture, Fisheries and Food what is his estimate of the extra cost to the agricultural and horticultural industries of the recent rise in the Bank Rate.
§ Mr. PeartAbout £5¼ million on credit supplied by the banks and hire purchase companies for current farming purposes. No estimate is yet possible for the cost of any increases in the charges for credit supplied by agricultural merchants since it is not yet clear to what extent the merchants will raise their charges.
§ Mr. SoamesIn view of the fact that one of the first actions of this Government was to increase the price of money to this extent to the farmers, is he aware that during the General Election he wrote an article in one of the farming papers where he told the agricultural industry that he would create a new agricultural credit organisation, backed by the Treasury, to provide farmers with credit at reasonable rates of interest? Does this mean that he intends to ensure that the agricultural industry does not have to pay the full 7 per cent. Bank Rate?
§ Mr. PeartNo, not at all. I am glad that the right hon. Gentleman has read my excellent article. Indeed, it may well be that at a later date we shall certainly complete our election programme. [Interruption.] Why not?