HC Deb 26 January 1971 vol 810 cc308-9
16. Mr. Dykes

asked the Chancellor of the Exchequer what was the cause of the rise in the United Kingdom private investment overseas in the third quarter of 1970.

Mr. Barber

This was largely due to an increase of £75 million in direct investment overseas which rose to an exceptionally high level. It was mainly attributable to a coincidence of several large transactions.

Mr. Dykes

I am grateful for that statistical reply, but would not my right hon. Friend agree, since the balance of payments is no longer in a mess as it was previously—[HON. MEMBERS: "Oh."]—and, of course, paying tribute for that wherever it may be due—that there is opportunity now to consider a somewhat more forward-looking programme in connection with overseas investment, bearing in mind what happened in the third quarter and the desire of investors in this country to build up valuable assets for the country overseas?

Mr. Barber

I agree in stressing the importance of overseas investment as a basis for future income for the country, but there are limits to what we can afford to finance from the reserves in the present situation, particularly in view of the very heavy burden of debt we inherited.

Mr. Barnett

Would it not be better to restrain the flood of "hot" money by lowering the unnecessarily high interest rate, with the effect this has at present on unemployment?

Mr. Barber

I have already been asked about Bank Rate.

Mr. Barnett

The right hon. Gentleman did not answer.

Mr. Barber

Of course 1 did not. It is impossible to suggest that any Chancellor of the Exchequer will answer Questions in the House about the future course of Bank Rate.