§ 32. Mr. Nicholas BakerTo ask the Chancellor of the Duchy of Lancaster if he will introduce regulations to require moneylenders, banks and credit agencies, including credit card companies, to show clearly and simply in statements to customers the real rate of interest on any balance outstanding.
§ Mr. MaudeI have no plans to amend the current regulations under the Consumer Credit Act 1974, which have been in force since May 1985, relating to the disclosure of the rate of interest applied to outstanding balances due under running account credit agreements. These types of agreement apply to credit cards, store cards and budget accounts. Discussions are currently underway with the banks on making known the rate of interest that has been applied to an overdraft.
§ 46. Mr. KennedyTo ask the Chancellor of the Duchy of Lancaster if he will make a statement on the impact of the current level of interest rates on United Kingdom manufacturing industry.
§ Mr. AtkinsManufacturing industry will greatly benefit from the Government's firm anti-inflationary policy because inflation is the greatest threat to the nation's prosperity.
§ 47. Mr. Matthew TaylorTo ask the Chancellor of the Duchy of Lancaster what has been the cost to industry of the rise in base rates since April 1988; and if he will make a statement.
§ Mr. AtkinsThe cost to industrial and commercial companies to date of the changes in bank base rates since April 1988, compared with the cost if bank base rates had remained the same since April 1988, is estimated to be about £1 .3 billion. The hon. Member should bear in mind, however, that a one percentage point increase in interest rates, even if sustained for a full year, costs companies far less than a one percentage point increase in pay settlements.