HC Deb 18 October 1966 vol 734 c18
21. Mr. James Davidson

asked the Chancellor of the Exchequer what instructions have been given to the banks to make credit more readily available to the agricultural industry, in accordance with the official statement of Her Majesty's Government's policy made on 20th September, 1966.

Mr. Callaghan

I am assured that the banks fully understand the policy in relation to credit for agriculture. There is no need, therefore, for further guidance.

Mr. Davidson

Is the Chancellor not aware that in many areas, particularly upland and hill areas, and areas where small farms predominate, farmers find themselves in an exceedingly difficult position following a disastrous harvest and a slump in lamb and calf prices, and that bank managers in these rural areas also find themselves in a very difficult position, due to the complete lack of specific instructions to the banks?

Mr. Callaghan

On the last part of the hon. Member's supplementary question, for which I am responsible, I do not think that what he has said is true. My right hon. Friend the Minister of Agriculture made a speech which was widely accepted by the industry as representing a very satisfactory answer to the question of the supply of credit. I thought so myself when my right hon. Friend made it.