§ 90. Mr. F. Willeyasked the Chancellor of the Exchequer whether he is now in a position to make a further statement on credit facilities for the building of new ships in the United Kingdom.
§ Mr. R. A. ButlerYes. The credit facilities for shipbuilding are not confined to the banks, but recent inquiries have confirmed that there is a case for some adjustment in the repayment stipulations that have been attached to bank advances for this and other purposes. I have decided to revise the general arrangements that have operated since December, 1951, for the scrutiny of bank advances referred to the Capital Issues Committee. In future, the Committee will continue to consider the purpose of bank advances referred to them, but as a general rule the period and repayment of such borrowing will be settled between94W the bankers and their customers. I am confident that the banks will continue to observe the principles of sound finance on which the stipulations of the Capital Issues Committee have been based.
So far as shipbuilding in particular is concerned, I believe it would be consistent with those principles for the banks to use their discretion in granting credit facilities on terms which have regard to the special needs of that industry. In accordance with past practice, I propose to embody the revised arrangements in a letter of guidance to Lord Kennet, which I shall, with permission, circulate in the OFFICIAL REPORT.