HC Deb 30 June 1969 vol 786 cc25-6
33. Mr. Goodhew

asked the Secretary of State for Social Services whether he will take steps to authorise the repayment of medical practice compensation to those doctors in the National Health Service who require the money for the improvement of their surgery premises, or to repay bank loans incurred for that purpose.

Mr. Crossman

No, Sir. Other means are available for helping doctors to finance improvements to their premises.

Mr. Goodhew

Is the right hon. Gentleman aware that large numbers of doctors in the National Health Service have to pay very high rates of interest to banks to enable them to improve their surgeries while the Government sit on the compensation owed to them and give them only 2¾ per cent.? Is he also aware that the banks are trying, because of Government policy, to persuade doctors to repay loans? Would it not be simpler for the Government to give to the doctors the money that is owed to them?

Mr. Crossman

It is more sensible to keep the problem of compensation separate from the problem of assisting doctors to build their own premises. There are a large number of young doctors who like to build their own premises and who do not have compensation. The system is working satisfactorily.

Mr. Maurice Macmillan

Could the right hon. Gentleman say whether doctors who are borrowing from banks to improve their premises will be allowed to continue deducting their interest tax-free because the expenditure is for this purpose?

Mr. Crossman

That is a different question which should be put down separately.

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