§ 20. Mr. Hawkinsasked the Minister of Agriculture, Fisheries and Food what estimate he has made of the cost of the increased Bank Rate to the agricultural industry.
§ Mr. John MackieThe extra cost in a full year on loans by the banks to agriculture would be about £5 million. About £3¼ million of this relates to current farming purposes, of which some £2½ million is in respect of Review products.
§ Mr. HawkinsWill the Minister make a special additional Review allocation because of the extra costs which have arisen as a result of that £5 million?
§ Mr. MackieNo, Sir. The extra £3¼ million which I mentioned is not only for Review products. The rest of the £5 million concerns landlords' capital, taken into account in the 7 per cent. included in the Review for rent increases.
§ Mr. James DavidsonWhat instructions have been given to the banks to make capital more easily available to agriculture for expansion purposes?
§ Mr. MackieThe banks have been given instructions—if that is the right word—that agriculture has the same priority as export industries, and there is no difficulty for working capital. The banks must keep within the ceiling, and medium-term capital may be difficult, but farming is given the same chance as any exporting industry.