FOREIGN LOAN (Hansard, 16 November 1967)

§ Mr. Sheldon

I beg to ask leave to move the Adjournment of the House, under the new Standing Order No. 9, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, that a loan is being negotiated by the Government with foreign banks. The new requirements are, as you mentioned, Mr. Speaker, a specific and important matter which should have urgent consideration. I believe that it is necessary to give this matter urgent consideration because, as we heard from the Leader of the House this afternoon, there is no guarantee of a vote before negotiations. I think that it is urgent because the loan being negotiated now may well result in a fait accompli being presented to us, with no chance for us to decide the matter ourselves. It is also urgent because, in this complex world of international agreements, one cannot come to this House in the middle of those agreements and ask for the acceptance before going back.

I believe that it is specific, in so far as we know from all the Press reports that negotiations are taking place. Although my right hon. Friend the Chancellor of the Exchequer was not able to confirm or deny, we know by the very nature of these negotiations that this is pretty well the standard phrase to say that negotiations are taking place.

When considering its being specific, we are in some difficulty. If raised before agreement has been reached, then it is not quite as specific, but it is extremely urgent. On the other hand, if the agreement is made and then comes before this House, the matter is purely specific but then is not urgent any more. Therefore, there is this balance between being specific and being urgent.

I believe that it is important because, unlike the nature of other loans which we have been granted, we have not been in such economic difficulties as at present, so the conditions for such loans have not been as arduous as the conditions for this loan are almost certain to be. It is important because these measures are even severer than those of 20th July.

I believe that this is important because we have come to an economic climax in the life of two Labour Governments. 651 This great decision will change the face not only of our economy, but of our social conditions over the next three or four years. It is important, also, because it means that, as a result of this loan, the control over our economy will be exerted by bankers overseas who will be laying down conditions as to what criteria we should or should not meet. These criteria will be much more strenuous than those which we debated when we agreed that Common Market countries could have some control over certain aspects of our actions.

It is important also because this control by overseas bankers is bound to end in lower consumption, wage control, continuing unemployment and possibly increased taxation. It is important because this is bound to be the corollary of bankers investing their money in an economy of which they are suspicious. It is important because few matters have come before us in my short time in the House which may well mark a watershed in the way that the Government operate in the interests of the people.

Whatever may be said and whatever your Ruling, Mr. Speaker, if the new Standing Order No. 9 will not cover matters as grave as this then those of us 652 who voted so wholeheartedly in favour of changing the Standing Order will be grievously disappointed.