§ Mr. John Fraserasked the Chancellor of the Exchequer what is Her Majesty's Government's policy regarding the proportion of lending by banks to be devoted to financing house purchase, house building. housing improvement, motor car purchases, purchase of private businesses, exports, imports, personal borrowing and commercial borrowing not allocated to any specific purpose, respectively.
§ Mr. Roy JenkinsCurrent guidance on bank lending is set out in the Bank of England's Notice on Credit Restriction, published on 19th November, 1967, copies of which are being placed in the Library. It is less specific than the Question implies. There is a ceiling on aggregate lending to the private sector apart from lending specifically identified with export transactions and fixed rate finance for shipbuilding. Within the ceiling, the banks have been asked to give priority to finance for production and investment designed to promote exports, invisible earnings and import-252W saving. There is a specific ceiling on lending to persons; but bridging finance for house purchase may continue to be made available.