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VEDNESDAY, JUNE 19, 1974
POOR RESPONSE TO LOAN SCHEME FOR SMALL INDUSTRY
THERE HAS BEEN NO OBSERVABLE INCREASE OF INTEREST IN THE LOAN SCHEME FOR SHALL INDUSTRIES DESPITE MODIFICATIONS TO THE APPLICATION PROCEDURES, THE DIRECTOR OF COMERCE AND INDUSTRY, THE HON. JIMMY MCGREGOR, SAID TODAY.
HE TOLD THE LEGISLATIVE COUNCIL THAT SINCE THE SCHEME WAS INTRODUCED TWO YEARS AGO 12 APPLICATIONS FOR LOANS HAVE BEEN RECEIVED AND NINE OF THESE HAVE BEEN APPROVED FOR A TOTAL OF $1,330,500.
MR. MCCREGOR SAID THAT THERE APPEARED TO BE TWO BASIC REASONS FOR THE RATHER POOR RESPONSE SO FAR.
+THE FIRST IS THAT THERE WAS NOT UNANIMOUS AGREEMENT ON THE CASE FOR SUCH A SCHEME TO BEGIN VITH, + HE SAID.
+ALTHOUGH INDUSTRIALISTS WERE CERTAIN THAT A SCHEME OF THIS TYPE WAS NEEDED, THE BALLS GENERALLY SAID THEY WERE ALREADY SUPPORTING INDUSTRY ADEQUATELY AND THE COMMERCE AND LOUSTRY DEPARTMENT WAS, I MUST COMESS, DIVIDED IN VIEU.
+I WAS PERSONALLY A STROLS ADVOCATE OF THE SCHEME AND I AM THEREFORE DISAPPOINTED AT THE RESPONSE SO FAR. IT DOES SEEM LIKELY NOW THAT THE BANKS LLRE SULSTANTIALLY CORRECT IN THEIR VIEU.+
MR. MCGREGOR SAID THE SECOND REASON FOR COMPARATIVE FAILURE WAS THAT THE NEED FOR LOAN FINALCE IN SHALL-SCALE INDUSTRY IS PRODALLY MORE FOR WORKING CAPITAL RATHER THAN FOR PRODUCTIVE MACHIRY.
HE POINTED OUT THAT THE LOAN SCHEME DID NOT, OF COURSE, CATER FOR WORKING CAPITAL, NOR COULD IT WITHOUT SUCH EXTENSIVE CHANGE AS TO COMPLETELY ALTER ITS CHARACTER.
HR. MCGRECOR STRESSED THAT THE SCHEME IS STILL OPERATIVE AND IS ASSISTING INDUSTRIAL EXPANSION AND IKPROVED PRODUCTIVITY EVEN IF ONLY 10 A SMALL EXTENT.
+INDUSTRY IS WELL AWARE OF THE SCHEME AND THE WAY IT OPERATES AND IT IS MY HOPE THAT GRADUALLY THE SMALL SCALE INDUSTRIALIST WILL MAKE HORE USE OF IT, HE ADDED.
HR. MCGREGOR WAS REPLYING TO A QUESTION FROM THE HON. LEE QUO-VEI WHO ASKED FOR A STATEMENT ON THE UP-TO-DATE SITUATION REGARDING THE LOAN SULE, AND WHETHER THE GOVERNMENT VOULD TAKE FURTHER STEPS TO PROMOTE ITS UTILISATION.
HE DISCLOSED THAT THE LOANS FOR SMALL INDUSTRY COMMITTEE WILL BE ASKED SOON TO REVIEW THE PROGRESS OF THE SCHEME AND TO SUGGEST ANY FURTHER MODIFICATION WHICH MAY SEE. DESIRABLE.
Am. NCCHIEGION