HC Deb 17 March 1970 vol 798 cc185-6
18. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is now his estimate of the probable percentage increase in domestic credit over the current financial year.

Mr. Diamond

I have nothing to add to my right hon. Friend's answer to a similar Question which the hon. Gentleman asked on 20th January last.—[Vol. 794, c. 230–1.]

Mr. Bruce-Gardyne

Is it not evident, notwithstanding that reply, that the pre- sent severity of the credit squeeze is having the effect of pulling in "hot" money which is expensive to service and just as likely to go out again? Under the circumstances, has not the time come at least to stop fining banks for going over their lending ceiling and to abolish the prior deposits scheme?

Mr. Diamond

What the hon. Gentleman is referring to has nothing to do with "hot" money.

Mr. Hordern

Does the right hon. Gentleman intend to place any restriction on the increase in domestic credit in the forthcoming financial year, and if he does will he mention it in his Budget Statement?

Mr. Diamond

My right hon. Friend has listened carefully to the hon. Gentleman's request.