§ 29. Mr. J. E. B. Hillasked the Minister of Agriculture, Fisheries and Food what representations he has received on the need to provide further credit to enable the agricultural expansion programme to continue; and whether he will make a statement.
§ Mr. John MackieVery few. Existing credit facilities, coupled with the support for the industry provided by the Government, should make sufficient capital available for the expansion programme.
§ Mr. HillIs the Minister aware that although the Government may not make any allowance for bad weather conditions, bankers must do so if farmers are not to go out of business? Does he not 475 agree that bankers are handicapped in extending credit to farmers not merely because agriculture is the priority after exports, but because of the priorities within the existing bank ceiling, as a result of which some banks cannot lend to farmers even when they want to?
§ Mr. MackieFarmers are not the priority after exports; they have the same priority as exports. Of course I agree that for medium-term capital requirements the banks have been asked to keep to a ceiling, but farmers have the same right to credit as other industries, as I said in an earlier reply.
§ Mr. StodartAre not bank loans "through the ceiling" which has been imposed on them by the Bank of England?
§ Mr. MackieTotal bank lending to agriculture increased by £36 million in the year ending February, 1969, while other lending, through the Agricultural Mortgage Corporation, has gone up by £24 million, so it is obvious that farmers are getting the credit they require.