§ 14. Mr. Leslie Huckfieldasked the Chancellor of the Exchequer whether he will now make a further statement about his plans for expanding medium-term investment finance.
§ Mr. DellFinance for Industry is expected to engage in its expanded activities very quickly. I understand that the company is already dealing with inquiries from potential customers.
§ Mr. HuckfieldIs my right hon. Friend aware that the result of the last relaxation of credit facilities in 1971 is that the Bank of England is now spending over £1,300 million propping up property companies and fringe banks? How will my right hon. Friend make sure that the Finance for Industry medium-term capital which will now be available on easier terms will go towards the kind of investment and structural reform that the economy demands?
§ Mr. DellFinance for Industry will have discretion as to where it lends its money, and it will consider projects put up to it by companies in industry.
§ Mr. HordernIs the Minister aware that any funds provided for Finance for Industry must necessarily come from existing institutions, from funds that they would otherwise have invested in Government securities? Therefore, is he aware that any funds so provided for Finance for Industry will be at a cost 751 to the Government's own borrowing requirement? Where will the Government get their money?
§ Mr. DellThat is not necessarily the case. The Government are doing a great deal of borrowing abroad. There is no evidence, as far as I know, that satisfying the Government's borrowing requirement and helping investment through Finance for Industry will be in conflict.