HC Deb 08 February 1966 vol 724 c198
37. Mr. Barnett

asked the Chancellor of the Exchequer if he will take early action to eliminate the effects of exchange control regulations in so far as they are shown to be harmful to companies attempting to increase their export potential.

Mr. MacDermot

Export policy and exchange control policy are complementary. Both are designed to secure a sound balance of payments. Exchange control policy is always under review.

Mr. Barnett

Is my hon. and learned Friend aware of the rather idiotic situation that exists, under which a company which sets up a distribution organisation abroad with a view to helping its exports finds that in the existing set-up it costs an extra premium of 20 per cent.—£200 for every £1,000? Is not this a rather silly situation, and will he not look into it?

Mr. MacDermot

I sympathise with that argument, and I realise that the export trade is immensely important, but it is also immensely important to contain the outflow of capital. In the kind of case to which my hon. Friend refers, a solution can be found by the firm borrowing abroad.