§ Mr. Joplingasked the Chancellor of the Exchequer, how many applications for loans have been made to the Rural Industries Loan Fund in each of the last five years; how many have been accepted; and how much money has been advanced in each year.
§ Mr. DiamondThe following is the in formation requested:—
Applications* Accepted Money Advanced £ 1961–62 … 390 359 103,769 1962–63 … 329 301 100,600 1963–64 … 334 299 115,683 1964–65 … 349 326 166,629 1965–66 … 430 392 290,592 * The figures refer to the applications received by the Rural Industries Loan Fund Main Committee.
§ Mr. Joplingasked the Chancellor of the Exchequer what representations he has had on behalf of the Rural Industries Loan Fund with regard to the inadequacy of funds available to them which have caused acceptable applications to be turned down; and what reply he has sent.
§ Mr. DiamondI understand that the Rural Industries Loan Fund made representations to the Development Commission some months ago on this point. A substantial increase in the Exchequer contribution for the current financial year has since been approved.
§ Mr. Joplingasked the Chancellor of the Exchequer why firms in development areas have to pay higher rates of interest on loans from the Rural Industries Loan Fund than on loans from the Board of Trade.
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§ Mr. DiamondThe rates of interest charged on loans from the Rural Industries Loan Fund are attractive when compared with normal commercial rates. These loans have a different purpose from those made by the Board of Trade, which are related solely to the creation of employment in development areas.
§ Mr. Joplingasked the Chancellor of the Exchequer whether he will take steps to reduce the level of interest on the Rural Industries Loan Fund loans to the same level as on Board of Trade loans.
§ Mr. DiamondNo. I would refer the hon. Member to the reply given to his preceding Question which explains that these loans are given for different purposes.