HC Deb 21 January 1969 vol 776 cc239-40
31. Mr. Eadie

asked the Chancellor of the Exchequer to what extent he consults Scottish banks in matters involving Government financial policies.

Mr. Diamond

Close contact is maintained through the Bank of England with the Scottish banks on financial matters which may be of concern to banks in general and to Scottish banks in particular.

Mr. Eadie

Would my right hon. Friend not agree that there are strict limitations upon any consultations that can take place with the Scottish banks, because of agreements and amalgamations of banking interests on a United Kingdom basis?

Mr. Diamond

There are no restrictions, unless my hon. Friend is referring to the natural restriction of geographic distance. Consultations take place regularly.

Mrs. Ewing

Since neither shortage of labour nor inflationary pressures are prominent problems in Scotland, would the Minister not agree that directives to restrict finance should not be issued to Scottish banks?

Mr. Diamond

No. This is a matter which affects the United Kingdom economy as a whole.