HC Deb 18 December 1953 vol 522 cc141-2W
Mr. Gower

asked the Chancellor of the Exchequer what steps he will take to assist the British shipbuilding industry in view of the resurgence of German and Japanese shipbuilding.

Mr. Maudling

I would refer my hon. Friend to my right hon. Friend's reply of 17th December to the hon. Member for Sunderland, North (Mr. F. Willey).

90. Mr. F. Willey

asked 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.

1953. Mr. R. A. Butler,

pursuant to his reply [Official Report, 17th December, 1953; Vol. 522, c. 93–94] circulated his letter to Lord Kennet as follows

18th December,

"The particular issue of credit facilities for the shipbuilding industry has led me to consider the general arrangements for the scrutiny of bank advances referred to the Capital Issues Committee.

Under the special arrangements made in my letter of 4th December, 1951, I invited the Committee to consider not only the purposes for which such advances were required, but also what stipulations they should make about the period of such borrowing and ultimate arrangements for repayment or for the provision of permanent finance.

I am not proposing any change in the request that I made simultaneously to the banks in December, 1951, and accordingly the Committee will continue to consider the purposes of bank advances referred to them, and in particular the merits of proposals for bank advances for capital expenditure and other proposals for bank borrowings not made in the ordinary course of business.

I have however decided that the time has come for the banks to reassume full responsibility for the terms as to period and repayment, of such advances. I shall, of course, always be glad to consider any special case when the Committee think that the terms of the advance are so bound up with the purpose that both should be covered by their recommendation. But in general I suggest that it is no longer necessary for the Committee to make stipulations on the period and repayment of such loans, since I am assured that the banks fully endorse the principles of sound finance on which the Committee has based its stipulations and that they will observe those principles in their dealings with their customers."