HC Deb 02 December 1969 vol 792 cc1284-5
28. Mr. Kenneth Lewis

asked the Chancellor of the Exchequer if he will introduce regulations to ease hire-purchase restrictions.

Mr. Diamond

No, Sir.

Mr. Lewis

Why not? The Chief Secretary should recognise that by the turn of the year there will be a turn-down in trade in various aspects because of the difficulty that people have in ordering goods on hire purchase due to Government restrictions. Could not they be eased now if the economic situation is better?

Mr. Diamond

The short answer is that the export performance of the industries most affected by current restrictions is generally highly satisfactory.

Mr. Macdonald

In view of the emphasis now placed on the control of money supply, would it not be better to consider exercising control over hire purchase by setting a top limit to the credit available and leaving the finance companies to exercise that control by discriminating amongst the credit worthiness of their customers, rather than these set and arbitrary percentage deposits?

Mr. Diamond

That is a tenable point of view, and I will consider it carefully. I think that our present system is an improvement, but I will consider it.