HC Deb 05 December 1944 vol 406 cc354-5
57. Mr. Touche

asked the Chancellor of the Exchequer whether it is proposed to continue the existing arrangements as regards blocked sterling balances in India by which the sterling payable by this country automatically increases with rises in local costs, as this system places a premium on inflation.

Mr. Peake

These questions are kept under continuous review both by His Majesty's Government and by the Government of India. The House will realise that the Government of India have every inducement to counteract inflation and will be aware that they have in fact been successful in stablising the price level in India during a period of almost 1½ years. I must add that it is quite incorrect to describe these balances as blocked. They are available for expenditure anywhere within the sterling area.

Sir Alfred Beit

In view of the fact that there is no such body in India as the Select Committee on National Expenditure, what steps are available to His Majesty's Government to see that they are not being over-charged for goods and services provided by India?

Mr. Peake

I do not think that it is only upon the activities of the Select Committee on National Expenditure that we depend for seeing that we do not pay too much for proper services.