§ Mr. Gryllsasked the Secretary of State for Industry what is the percentage premium, if any, required by Governments, on lendings under loan guarantee schemes in the following countries: the United States of America, Canada, Holland, Japan and the United Kingdom.
§ Mr. MacGregorThese international comparisons are complicated and I will write to the hon. Member about them. Unlike the United Kingdom scheme, loan guarantee schemes in other countries are often not intended to be self-financing and where premiums are charged they are generally lower than the United Kingdom's 3 per cent. premium.
§ Mr. Gryllsasked the Secretary of State for Industry which banks were operating the loan guarantee scheme (a) on 1 June 1981 and (b) on 8 June 1981; and if he will list the other banks that have applied to his Department to be allowed to participate in the scheme to date.
§ Mr. MacGregor[pursuant to his reply, 10 June 1981]: The institutions operating the loan guarantee scheme on 1 and 8 June were:
- Barclays Bank Ltd.
- Lloyds Bank Ltd.
- Midland Bank Ltd.
- National Westminster Bank Ltd.
- Williams and Glyn's Bank Ltd.
- Bank of Scotland
- Royal Bank of Scotland Ltd.
- Clydesdale Bank Ltd.
- Industrial and Commercial Finance Corporation Ltd.
We are having discussions with a number of other institutions which want to participate in the scheme, but the details are commercially confidential at this stage.
§ Mr. Gryllsasked the Secretary of State for Industry if he will publish the basis of the calculation on which he decided the need for a 3 per cent. premium for the Exchequer in the loan guarantee scheme announced on 1 June 1981.
§ Mr. MacGregor[pursuant to his reply, 10 June 1981]: After careful consideration, we decided that this figure represented the best balance we could strike between a number of requirements. As this is a novel pilot scheme for the United Kingdom, there was no previous experience applicable to British conditions to guide us. We shall of course be keeping the operation of the scheme under review and we shall be prepared to change the premium, or indeed other aspects of the scheme, should that seem appropriate in the light of experience.