§ Mr. Smallasked the Secretary of State for Industry if he will make a statement about the home credit scheme for shipbuilding.
§ Mr. BennThe scheme has been reviewed with the clearing banks, which have agreed to accept certain modifications which will restrict their rate of return under it. The revised arrangements will come into effect forthwith. Finance under the scheme will continue to be made available by the banks at an interest rate fixed by the Government in accordance with the OECD understanding to which we and other major shipbuilding countries subscribe. Provision will be made in the Winter Supplementaries for payment of the contingent liability to
506Wwidely depending on the grade or quality supplied, the quantity delivered, terms of supply and the location of the consumer.
The following prices are typical for the domestic and industrial markets:
of total NCB costs for each of the last four financial years; comparable data are not available for a current period.
the banks which, as the Third Report of the Public Accounts Committee indicated, has arisen because I had no statutory authority to make direct payments to the banks for this purpose.
I shall be introducing legislation in this Session to enable me to meet any liabilities to the banks which may arise under the revised arrangements.