Revolving Fund for Industry (Applications)

Oral Answers to Questions — Trade and Commerce – in the House of Commons at 12:00 am on 8th April 1954.

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Photo of Sir Austen Albu Sir Austen Albu , Edmonton 12:00 am, 8th April 1954

asked the President of the Board of Trade how many applications have been received for loans from the Revolving Loan Fund established with counterpart funds in accordance with Command Paper No. 8918; how many have been approved; and what has been the average size of loan granted.

Photo of Mr Peter Thorneycroft Mr Peter Thorneycroft , Monmouth

Three hundred and twenty-one applications for loans from the Revolving Fund for Industry had been received up to the end of March, and the Advisory Committee set up to examine them had recommended loans in 32 cases, subject to negotiation of the necessary agreements. These negotiations are in various stages and in a few cases are approaching completion. The average amount of the loans recommended is approximately £10,000.

Photo of Sir Austen Albu Sir Austen Albu , Edmonton

Can the right hon. Gentleman say why the number of loans approved is such a very small proportion of the total applied for? Can he indicate the types of industries to which loans have been granted?

Photo of Mr Peter Thorneycroft Mr Peter Thorneycroft , Monmouth

I could not answer the second part of that supplementary question without notice. There are a great number of industries that would feel that they would benefit from certain facilities for borrowing money, but I think it is right to concentrate lending to those cases from which real advantage to productivity may accrue through lending.