§ 7. Mr. Evelyn Kingasked the Minister of Agriculture, Fisheries and Food if he will make representations to the Agricultural Mortgage Corporation in respect of the rates of interest it is now charging in order to encourage new programmes of capital investment.
§ Mr. Anthony StodartNo, Sir. I believe that the confidence which the industry is displaying should give ample incentive for new investment.
§ Mr. KingIs my hon. Friend aware that already, under the Farm Capital Grants Scheme, the contribution has been reduced from 30 per cent. to 20 per cent. and the number of items upon which grants can be claimed has been reduced? In addition, the AMC mortgage rate has gone up to 12 per cent., which must mean a withdrawal of capital in the industry and an increase in the cost of food. If the Government can make representations to building societies on interest rates can they not make equal representations to a body on which they have more influence?
§ Mr. StodartThe reason for the temporary bridging grant to the building societies has been explained and the same considerations do not apply here. I remind my hon. Friend that there was a record amount of lending by the AMC in the year up to 31st March, and there 1682 has been no sign of a fall off since 1st April, although the grant to which he referred was cut.
§ Mr. Elystan MorganDoes the Minister agree that the AMC is not paying a substantial part in the provision of agricultural credit? Are there any institutions of the EEC which enable credit to be given, especially for those who are starting up in farming and for farmers who are tenants and wish to purchase their farms? Has the Minister given further consideration to the establishment of a land bank?
§ Mr. StodartAll these matters will have to be discussed within the Council of Ministers. The point to which the hon. Member referred about grants for young men starting up in farming was one with which I dealt in the Adjournment debate initiated by a Labour Member before Easter.