HC Deb 21 February 1956 vol 549 cc182-3
33. Mr. Grimond

asked the Chancellor of the Exchequer what steps he is taking to control Government short-term borrowing.

Mr. H. Macmillan

I shall take every opportunity both to reduce the amount of Government borrowing and to raise the requirements of the Exchequer by suitable methods.

Mr. Grimond

While not pressing the Chancellor for details of his policy, may I ask him whether it is clear that he intends to try to reduce the issue of Treasury bills and to go in for some form of funding operation?

Mr. Macmillan

As I explained in a passage of my speech, which perhaps the Economic Secretary will be able to amplify, the difficulty is that every year the enormous borrowings for the nationalised industries have to be financed either by Treasury bills or by the issue of fresh loans which press on the market.

Mr. Nicholson

Will my right hon. Friend take this opportunity of correcting the impression which was given, perhaps mistakenly, by the Financial Secretary the other day when he said that Treasury bills are not in themselves inflationary?

Mr. Macmillan

I do not want to enter into the metaphysics of this question, which is very complicated.