GOVERNMENT CREDIT POLICY HOLDS
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THE Government will not reverse their advice to the hanks that loans for financing denationalization may be given the same priority as loans for export, defence and other important demands. The Economic Secretary to the Treasury, Mr. R. Maudling, gave this information to •Mr. James Callaghan in the House of Commons last week.
Mr. Maudling added that whilst the provision of credit for the purchase of Road Haulage Executive assets was consistent with Government policy, it had to be left to the banks to decide whether to provide facilities to individual customers.
Mr. Callaghan pressed his question and demanded whether credit facilities better than those given to ordinary businessmen would be made available merely for the sake of breaking up the R.H.E. Mr. Maudling replied that there was a difference between transferring existing assets and creating new ones.
On Monday, Mr. Callaghan put his question to the Chancellor of the Exchequer and was told that the Government had not advised the banks to give the same priority to loans for the purchase of R.H.E. vehicles as to loans for the export trade. The Chancellor supported Mr. Maudling's remarks, but added that he was satisfied that the banks would continue to regard exports as the more important concern.