§ Mr. Stevensasked the Chancellor of the Exchequer what guidance he has given to the Capital Issues Committee about projects for development in areas with more than the average rate of unemployment.
Mr. AmoryI have written the following letter to the Chairman of the Capital Issues Committee:
Dear Lord Kennet,
In reviewing the Government's credit policy for the purposes of the 1958 Budget, I have come to the conclusion that an intensification of disinflationary measures is not needed, but that the moment has not yet come for any General relaxations.
42WIt follows that in general there is no change in the instructions to the Capital Issues Committee, and I ask you and your colleagues to maintain your critical scrutiny of the applications on which you are good enough to advise the Treasury.
There is, however, one class of applications requiring special treatment. I said in my Budget Speech that the need for caution generally should not make us overlook the problem of difficult patches of persistent unemployment, and that it is the Government's firm resolve that this shall be tackled with the greatest energy. It is therefore the Government's wish that projects for sound developments in areas where unemployment is substantially above the average should not be held back by lack of credit or finance I have informed the banks accordingly, and I am writing to let you know that it would be consistent with Government policy for the Committee to recommend consent to the raising of finance for such projects provided that the proposals are otherwise acceptable to the Committee