§ 13. Mr. Ridleyasked the Chancellor of the Exchequer by what authority he imposes restrictions on private portfolio investment in Australia by United Kingdom residents.
§ Mr. CallaghanUnder the voluntary programme announced in my Budget Speech, I asked institutions not to increase over a period their holdings of securities denominated in the currencies of Australia and the other developed sterling area countries. The Control of Borrowing Order, 1958, regulates some borrowing in this country by those residents outside the United Kingdom.
§ Mr. RidleyIs the right hon. Gentleman aware that the Control of Borrowing Order simply applies to borrowers in Australia and has no legal force on investors here? Therefore, by what authority did the Bank of England write and tell investors that they were not to take up rights in various issues by Australian companies? Surely it had no authority whatsoever for making that suggestion.
§ Mr. CallaghanThe legal position is quite clear: there is authority for this. But I am aware that it is causing some difficulty. Now that it has been brought 192 to my attention, I am having the matter examined to see what easement can be made.