HL Deb 05 December 1967 vol 287 c522

2.37 p.m.

LORD GRANTCHESTER

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government the additional amount of their liabilities in sterling to the International Monetary Fund in respect of their deposits and borrowings as at November 19, 1967, as a result of the alteration in the exchange rate.]

LORD BESWICK

My Lords, the sterling equivalent of drawings outstanding which have to be repaid in foreign currency is increased by £90 million. In addition, we shall make a payment of £206 million to the Fund to restore the gold value of the Fund's sterling, which is largely held in the form of non-interest bearing notes.

LORD GRANTCHESTER

My Lords, should I be right in assuming that the current instalment of this payment, which totals just £300 million, that has to be made to restore our pre-devaluation position, will have to be dealt with in the Budget, and presumably raised by taxation will have to be dealt with in the Estimate be tabled showing this and any other similar, new liability in sterling arising out of devaluation?

LORD BESWICK

No, my Lords, there is no question of taxation. The £206 million is, in a sense, only a bookkeeping transaction.