HC Deb 17 March 1970 vol 798 cc174-5
2. Mr. Sheldon

asked the Chancellor of the Exchequer what estimate he has now made of the surplus on current and long-term capital account in the financial year ending March, 1970.

The Chancellor of the Exchequer (Mr. Roy Jenkins)

The balance of payments for 1969 has recently been published and shows an estimated surplus of £451 million between April and December. I do not propose to make any estimates at present for the current quarter, but the indications are that the current account continues to be in substantial surplus.

Mr. Sheldon

I congratulate my right hon. Friend on the largest surplus which this country has ever had in its history. Would he consider whether it can now be used to provide the increase in manufacturing investment and a reduction of the credit squeeze, in so far as it particularly affects small manufacturing companies?

Mr. Jenkins

As I have said, I do not think that the surplus can be directly used but should be used as a basis on which to achieve a steady and substantial rate of growth. Clearly, manufacturing investment is an important component in this.

Sir B. Rhys Williams

Is not this a golden opportunity to introduce a greater degree of flexibility in the sterling exchange rate.

Mr. Jenkins

I do not know what the hon. Member means by a "golden" opportunity, but my views on this issue are not changed from those which I have expressed before.