§ Mr. BayleyTo ask the Chancellor of the Exchequer what estimate he has made of the amount of money lent by clearing banks to small firms at interest rates linked to a base rate subject to a minimum level independent of base rate; and how many small firms currently have loans of this type.
§ Mr. NelsonI have not made any such estimate. But it is one fact of bank practice which the Bank of England will cover in the study I have asked it to carry out.
§ Mr. BayleyTo ask the Chancellor of the Exchequer if he will meet the chairmen of the clearing banks to urge them to amend their loan agreements so that small firms receive the full benefit of a reduction in the official base rate.
§ Mr. NelsonAs my right hon. Friend the Chancellor of the Exchequer told the Treasury and Civil Service Select Committee at its hearing on 16 November, he plans to meet the bank chairmen when he has the total opportunity. In the meantime, as the hon. Member will be aware, National Westminster bank reduced its minimum interest rate for commercial customers from 8 to 6 per cent. on 11 November. Barclays bank reduced its floor from 7 to 6 per cent. on 13 November.