HC Deb 02 July 1969 vol 786 cc411-2
12. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food what were the total bank advances obtained by farmers in 1963 and 1968; and what were the advances obtained in February, 1969.

Mr. John Mackie

Total bank advances to agriculture and forestry in Great Britain at mid-February in the years 1963, 1968 and 1969 were £401 million, £482 million and £519 million respectively.

Mr. Mills

Does the Parliamentary Secretary realise that overdrafts have increased under a Socialist Government by £125 million, and when we add what merchants have also provided, we realise the serious position which British agriculture is in under a Socialist Government? This is deplorable. What are the Government to do about it?

Mr. Mackie

There are different views about this. This is probably the faith which the banks have in agriculture and the faith which farmers have in this Government in borrowing.

Sir Richard Glyn

As credit for agriculture is so expensive and hard to get, has a decision yet been made on the proposal to make available interest-free loans to farmers who are worst hit?

Mr. Mackie

Credit for agriculture is not more expensive than credit for any other industry. My right hon. Friend has very carefully considered the suggestion by the right hon. Member for Grantham (Mr. Godber) of interest-free loans, but he cannot accept it. It would set a precedent with wide repercussions. My right hon. Friend has no power to make such loans, and the administrative difficulties would be very great indeed.