HC Deb 02 July 1969 vol 786 cc408-11
11. Mr. Peter Mills

asked the Minister of Agriculture, Fisheries and Food what credit is available to British agriculture for normal working capital to enable farmers to achieve the increased production that is required by Her Majesty's Government to help solve the balance of payments problem.

20. Mr. Scott-Hopkins

asked the Minister of Agriculture, Fisheries and Food if he will take steps to enable farmers to have access to credit at reasonable rates of interest in order to finance the expansion in those sectors of the industry that he selected in the Annual Price Review; and if he will make a statement.

Mr. John Mackie

Total bank lending to agriculture and forestry at mid-May for working capital and other purposes was £512 million. Credit for working capital is also provided by agricultural merchants and other sources.

At the Annual Review, the Government gave a special impetus to those sectors selected for expansion. There is no real evidence that the programme is not being adequately financed from existing credit facilities.

Mr. Mills

On a point of order, Mr. Speaker. I think that the Minister must have replied to the wrong Question.

Mr. Mackie

I replied to Question No. 11 on the Order Paper.

Mr. Mills

Does not the Minister realise that unless he solves this problem of agricultural credit he will never get the expansion that the country needs in its present position? If he thinks that he can solve the problem without dealing with it, he is simply whistling in the dark.

Mr. Mackie

I presume that the hon. Gentleman's supplementary question relates to Question No. 11. If that is so, the reply is that if he has individual cases he should bring them forward, and we will deal with them.

Mr. Scott-Hopkins

Does the Parliamentary Secretary realise that most of his answers have been incredibly unsatisfactory up to now and that he seems unable to appreciate the great hardship there is in the farming industry as farmers cannot get credit and achieve what they are asked to do? It is no good saying that everything will be all right at the end of the harvest, because it will be too late to help by then.

Mr. Mackie

I do not think that any farmer I know expects to get the cash before the harvest. Apart from last year's conditions, which I know were serious, when we see this year's harvest we can appreciate the situation. I have probably seen more of the difficulty than the hon. Member has and I do appreciate the situation.

Mr. Stodart

When the Government were asked to take credit for agriculture from under the ceiling which the Bank of England has imposed and put it in the special position which certain exporters enjoy, why did the Government refuse?

Mr. Mackie

We have not refused. Farmers are in exactly the same position as exporters.

Mr. Scott-Hopkins

On a point of order. Mr. Speaker. In view of the unsatisfactory nature of the reply, I beg to give notice that I will raise this matter on the Adjournment.

16. Mr. Jopling

asked the Minister of Agriculture, Fisheries and Food what steps he is taking to relieve farmers from the difficulties caused by lack of adequate credit.

29. Mr. Charles Morrison

asked the Minister of Agriculture, Fisheries and Food what steps he has taken and proposes to take to ensure farmers are given adequate borrowing facilities to carry them through their current difficulties.

Mr. John Mackie

None, Sir. Agriculture is a priority category within the credit ceiling, and I am sure that the banks will do what they can within their lending ceilings. Despite current difficulties, I have received virtually no evidence that creditworthy farmers are not getting the credit they require for essential purposes.

Mr. Jopling

Now that the agricultural recession has begun, may I ask the hon. Gentleman whether he is aware that the Bank of England has written to the joint stock banks telling them that letters expressing pious hopes about priority agricultural borrowing should be virtually ignored and that they should not go beyond the Government's restrictions on credit policy?

Mr. Mackie

As I do not agree with the hon. Gentleman's first premise, I cannot answer the second part of his supplementary question.

Mr. Morrison

Does the hon. Gentleman realise that his reply will convince more and more farmers that the Government are totally opposed to the agricultural industry? Is it not about time that he did something to help the industry?

Mr. Mackie

If the hon. Gentleman believes that, he will believe anything.

Mr. Maclennan

Whether or not my hon. Friend agrees with the premise of the hon. Member for Westmorland (Mr. Jopling), would he say whether it is true that the Bank of England has written the letter to which the hon. Gentleman referred, which would appear to run absolutely counter to the Government's policy?

Mr. Mackie

I will look into that point.

Sir A. V. Harvey

Is the hon. Gentleman aware that the House has received varying statements in the last year from different Ministers on this subject? The banks say one thing; Ministers say another. Would he ask one of the Treasury Ministers to make a clear statement to the House which will be understood by farmers and give them the facilities which they expect and need?

Mr. Mackie

I disagree completely with the hon. Gentleman. The situation has been made perfectly clear to the agricultural community—that they have the same top priority within the ceiling. The purpose of the ceiling is to ensure that in the economic situation the borrowing is correct and for the right reasons.