§ 59. Dame Irene Wardasked the Chancellor of the Exchequer whether he will make a statement on the new instructions to the banks to ease the restrictions on finance in the development areas; to whom they will apply; what benefits will stem therefrom; and what total financial gain is estimated to accrue in the northern region.
§ Mr. CallaghanNo new guidance on lending in development areas is necessary: but in a recent public speech I gave fresh emphasis to the bank's lending policies in the development areas. In practice, the banks are willing to relax their normal lending criteria to help the promotion of business in the development areas, and they are prepared to provide credit to bridge the gap before firms eligible for Government grants and loans receive payment. This policy applies to all development areas, and is proving of benefit, although the precise financial effects cannot be measured.