HC Deb 07 November 1939 vol 353 cc33-4
56. Mr. Maxton

asked the Chancellor of the Exchequer the present position of the Exchange Equalisation Account; whether it is proposed to operate under war conditions as in peace-time; and what is the existing limit of the amount?

Sir J. Simon

As regards the first part of the question, I made a conditional announcement in 1937 that a statement of the position of the Exchange Equalisation Account would be published twice a year, in June and December, and such statements have since been published accordingly. That promise was, however, given in peace-time and I have come to the conclusion that it would not be in the public interest to continue such statements in war-time and that I must, therefore, ask the House to allow me to suspend them for the period of the war. In reply to the second and third parts of the question, I would refer the hon. Member to Section 1 of the Currency (Defence) Act, 1939, which came into force on the 3rd September. That Section extended the purposes for which the Exchange Equalisation Account might be used and provided that there should be no limit to the amount which might be issued to the Account.

Sir I. Albery

Will the right hon. Gentleman consider whether the statement which is made to the House on the Exchange Equalisation Account twice yearly might be usefully made to the Public Accounts Committee?

Sir J. Simon

There is no intention of altering the present practice by which a statement is made confidentially to the Public Accounts Committee and, of course, to the Comptroller and Auditor-General.

Sir I. Albery

Is the right hon. Gentleman aware that the statement made to the Public Accounts Committee does not give the information which is given to the House?

Sir J. Simon

I think we all have to recognise that in war time statements made on the Exchange Equalisation Account might very easily be of advantage to the enemy, and that we have to exercise a certain amount of restriction.

Mr. Maxton

I take it that I cannot get information from the Chancellor of the Exchequer as to how far his absolutely unlimited power to play with this matter has been used?

Sir J. Simon

I have not been playing with it.