HC Deb 26 January 1971 vol 810 c292
1. Dr. Gilbert

asked the Chancellor of the Exchequer how many official meetings with the Governor of the Bank of England he has had since 18th June, 1970.

The Chancellor of the Exchequer (Mr. Anthony Barber)

Since becoming Chancellor, I have had frequent meetings with the Governor.

Dr. Gilbert

Would the right hon. Gentleman say what proposals he has for resolving the dilemma in which his present reliance on monetary policy has landed him, namely, that the high interest rates in this country are so far out of line with those elsewhere in the world and are bringing in "hot" money which will defeat his restrictions on any increase in the monetary supply? For example, does he have any proposals for taxing foreign bank deposits?

Mr. Barber

Obviously the discussions I have with the Governor are, first, confidential, and second, cover a wide range of matters. There is a later Question on the Order Paper, which I expect will be reached, which concerns the level of interest rates in this country and its comparison with others.

Sir G. Nabarro

I warmly support my right hon. Friend's reply. Would he confirm that his reappointment of the Governor of the Bank of England for a further period of five years is intended to denote the utmost financial rectitude on the part of the Governor, as in the past warmly supported by my right hon. Friend throughout?

Mr. Barber

I am sure that the Governor of the Bank of England will take note of my hon. Friend's felicitous language.