Small Firms (Credit Restrictions)

Oral Answers to Questions — Wales – in the House of Commons at 12:00 am on 6th March 1969.

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Photo of Mr Donald Anderson Mr Donald Anderson , Monmouth 12:00 am, 6th March 1969

asked the Secretary of State for Wales what representations he has received about the effects on small firms in Wales of the restriction on bank credit; and what action he proposes to take.

Photo of Mr Ifor Davies Mr Ifor Davies , Gower

None, Sir. This is a matter for my right hon. Friend the Chancellor of the Exchequer.

Photo of Mr Donald Anderson Mr Donald Anderson , Monmouth

Does my hon. Friend see any connection between the present difficulties of small firms in Wales and the proposals for a national bank, which some argue could lead to more flexible credit procedures.

Photo of Mr Ifor Davies Mr Ifor Davies , Gower

The situation with regard to small firms is naturally one of the matters being taken into account by the Finance Panel of the Welsh Council during its current study of the availability of finance in Wales.

Photo of Mr David Gibson-Watt Mr David Gibson-Watt , Hereford

The hon. Gentleman will know that, with regard to the restriction of credit, the Bank of England issued a statement on 23rd May last year showing the various priorities for lending, which included agriculture. Why did it not include a reference to tourism? In view of the importance of tourism to the economy of Wales, will his right hon. Friend take this up with the Bank of England?

Photo of Mr Ifor Davies Mr Ifor Davies , Gower

The importance of tourism is fully appreciated on this side of the House. That is why the Government have their very interesting and important new proposals about the establishment of a new Welsh Tourist Board. The assistance given to the Tourist Board is recognised, but I will take note of the hon. Gentleman's remarks and follow this up.