HC Deb 03 February 1965 vol 705 cc1055-6
9. Mr. George Y. Mackie

asked the Minister of Agriculture, Fisheries and Food when he will create a special agricultural credit organisation to provide farmers with medium-term credit at reasonable rates of interest.

Mr. Peart

This is an important but complex subject which I am studying carefully.

Mr. Mackie

May I express the hope that the Minister will implement this part of his pre-election promises? In view of his answer to the last Question when he said that he hoped that agriculture would play a big part in the balance of payments, will he bear in mind that the provision of capital for improvements and equipment in farming is extremely important? Will the right hon. Gentleman go ahead with this election promise and set up a special agricultural credit organisation?

Mr. Peart

I hope that the hon. Member will not be too worried. We have a record of keeping our promises. The previous Administration did not keep the promises given to the electorate in their manifesto.

Mr. Soames

Is the right hon. Gentleman aware that he has made an interesting comment in that he is now realising that the pledge which he made at the election is a complex matter which needs a great deal of study. Is he implying that he did not realise this before the election, and had not studied the matter then?

Mr. Peart

I declared that we would be anxious to provide medium-term credit for farmers. That still stands. How we shall do it is a matter for discussion. [HON. MEMBERS: "When?"] A three months' period is not unreasonable to have careful discussions and investigations before I make an announcement.

Mr. W. Baxter

May I draw attention to the fact that under the new Cereals Marketing Bill, now in Committee, certain credit facilities are being made available to the farming community? Is not this, within three months after the election, a very substantial step in the right direction towards the implementation of the promises which we intend to keep?

Mr. Peart

I am grateful for the support of a practical farmer.

Mr. Baker

Would not the right hon. Gentleman agree that the banks and the agricultural merchants give a great deal of assistance to the farmers? Would he not endorse that policy?

Mr. Peart

I accept that banks and merchants give a great deal of assistance, but there is still a problem of medium-term credit and I think that it is right that I should be considering it carefully.

Mr. Soames

In view of the right hon. Gentleman's reply to his hon. Friend the Member for West Stirlingshire (Mr. W. Baxter), should I understand that he is regarding the introduction in the Cereals Marketing Bill of credit facilities for cereal growers, which was agreed upon, as he will be aware, by the previous Government with all the parties to the agreement, as an implementation of his pledge to provide medium-term credit?

Mr. Peart

I believe that the Measure, which is my Bill and for which I am responsible, will be a good one and will help.