HC Deb 01 May 1958 vol 587 cc559-60
21. Mr. H. Lever

asked the Chancellor of the Exchequer what facilities are officially made available to United Kingdom importers for the hedging in sterling of obligations undertaken in foreign currency; and whether he will cause these facilities to be extended in such manner as will discourage premature payment for imports and encourage importers to make maximum use of credit facilities from their suppliers.

Mr. Maudling

Authorised banks may sell foreign currency for forward delivery to any United Kingdom importer who has a firm commitment to pay the currency for which cover is required. The second part of the Question does not, therefore, arise.

Mr. Lever

Is the Minister satisfied that the facilities for forward purchase are freely and cheaply available to British importers even for long periods ahead? Will he look into the matter to see why it is that British importers feel it necessary to make premature payment for imports to protect their currency position and hence bring a kind of speculative pressure to bear upon sterling from time to time?

Mr. Maudling

The fact that people are trying to make forward purchases of currency surely shows they do not intend to make an immediate payment in that currency.