§ Mr. Geoffrey Lloydasked the Chancellor of the Exchequer what proposals he has made to mitigate the harmful effects of the increase in Bank Rate on the motor industry and to enable the industry to sustain production and exports.
§ Mr. CallaghanI do not accept the implication that the motor car industry will not be able to sustain production and exports.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that the Government's high Bank Rate policy is making it impossible for local authorities to borrow money at reasonable rates of interest to carry out essential projects; and what action he proposes to take to assist local authorities to borrow money at reasonable interest rates.
§ Mr. CallaghanI would refer my hon. Friend to the reply I gave to my hon. Friend the Member for Glasgow, Shettleston (Sir M. Galpern) on 9th December.
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§ Mr. Arthur Lewisasked the Chancellor of the Exchequer on what date or dates prior to 1964 the Bank Rate was raised to 7 per cent.; for how long this rate was maintained; and to what extent the cost of living rose or fell during these periods.
§ Mr. MacDermotIn recent years Bank Rate has twice been raised to 7 per cent.; on 19th September, 1957, and on 26th July, 1961. The rate was maintained for 6 months and 10 weeks respectively. The retail price index rose by 2.3 percentage points during the first period, and by 0.9 points during the second. Those movements were mainly related to other factors.