§ 7. Miss Quennellasked the Minister of Agriculture, Fisheries and Food what he estimates to be the cost of the recent decision of banks to raise their lending rates by ½ per cent. in a full year to the agricultural industry.
§ Mr. John MackieThe extra cost in a full year on bank loans to agriculture would be about £.2.6 million. About £1.6 million of this relates to current farming purposes, of which some £1.2 million is in respect of Review products.
§ Miss QuennellWill this additional cost factor be taken into account in the forthcoming Price Review?
§ Mr. MackieThe £1.2 million I mentioned certainly will be.
§ Mr. Peter MillsIs the Minister aware that it is not only the high interest rates 992 which are a very real burden to the industry but the fact that British agriculture is having to borrow more and more to keep itself afloat? What is needed is a better end price, so that there is a little fat left.
§ Mr. MackieMembers of the Opposition will need to make up their minds. The complaint we often receive from hon. Members opposite is that the industry cannot borrow enough. Now the hon. Gentleman argues that it is borrowing more and more. Hon. Members opposite will have to make up their minds which it is.