HC Deb 07 February 1968 vol 758 cc380-1
25. Mr. Higgins

asked the President of the Board of Trade whether he is aware of the damage caused to British commodity markets by devaluation; what steps he proposes to take to minimise the damage; and if he will make a statement.

Mr. Darling

I fully appreciate the foreign exchange earnings of the commodity markets, but as my right hon. Friend the Chancellor has said, the Government cannot accept liability to compensate traders who will sustain losses because they bought forward in local sterling area currencies for onward sale in sterling. I understand, however, that the Bank of England's offer of loans of up to £5 million at a favourable rate of interest still stands.

Mr. Higgins

What estimate has the Minister made of the total loss incurred by the market? In view of the importance the market has for invisible earnings, may I ask whether he will tell the House to what extent the offer made by the Bank of England is likely to cover this loss?

Mr. Darling

Offhand I cannot give the figures the hon. Member wants, but the Chancellor of the Exchequer has discussed these problems fully with the trading interests concerned and I am quite sure that calculations have been made at the Treasury about the costs that have been incurred and the needs of the trading interests.