§ Mr. Nicolsonasked the Chancellor of the Exchequer what requests he has made to the Capital Issues Committee and to the banks concerning finance for hire purchase.
§ Mr. R. A. ButlerYesterday I addressed the following letter to the Chairman of the Capital Issues Committee:
Dear Kennet,
I know that, since I wrote to you on the 19th August last about the general limitation of finance for hire purchase, the Capital Issues Committee have been giving close attention to applications coming within this category, but in accordance with my request have not operated the limitation by imposing a rigid ban on all new finance for hire purchase. The Government has now decided that the economic situation calls for a closer check on consumer credit, and an Order has been made reimposing limitations on hire purchase and credit sale agreements. At the same time, steps must be taken to curtail the volume of hire purchase finance and I therefore ask your Committee in future to examine more stringently any application for finance for this purpose.
Yours very sincerely,
(sgd.) R. A. BUTLER.
The Rt. Hon. Lord Kennet, G.B.E., D.S.O.. D.S.C.
At the same time, I arranged for the terms of this letter to be brought to the notice of the Banks and Accepting Houses so that they might be aware of the importance which I attach to the limitation of finance for hire purchase, notwithstanding the statutory exemption from the provisions of the Control of Borrowing Order, 1947, of borrowings made in the ordinary course of business.