§ 7. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what is his latest forecast of the overall balance of payments outturn for calendar years 1967 and 1968, respectively.
§ Mr. CallaghanIn the first half of 1967 there was a deficit of £57 million. It has never been the practice to publish quantitative forecasts for the balance of payments.
§ Mr. Bruce-GardyneWould the Chancellor not agree that that is probably a good thing, because any forecast of a balance of payments surplus that he now made would be regarded with some scepticism? Would he not further agree that anyone at home or abroad, who saw the Prime Minister's television performance on Sunday night would be bound to have considerable reservations about the ability of a Government led by him to fulfil their rôle?
§ Mr. CallaghanI do not think that anyone is likely to desert the Prime Minister in favour of the hon. Gentleman. As to the relevance of the particular supplementary question he asked, the position is that there will be a deficit for 1967, arising to a very great extent out of the closure of the Suez Canal, which is costing a very substantial amount—something like £200 million a year more in the course of a full 12 months—while more recent months have been heavily affected by dock strikes.
§ Mr. BakerIn view of the contribution that agriculture can make to the saving of imports, can the right hon. Gentleman give the House any assurance that agricultural credit will not be restricted in the present circumstances?
§ Mr. CallaghanYes, Sir. In the bank notice that has been, or will be issued, agriculture is mentioned as one of the priority areas for credit along with exporters and the development areas.