Reserves (Hansard, 15 February 1972)

§ 8. Mr. Parkinson
asked the Chancellor of the Exchequer what is the current level of official reserves.

§ Mr. Maurice Macmillan
At end-January, converted at the middle rate, £2,679 million.

§ Mr. Parkinson
I thank my right hon. Friend for that reply and welcome the record level of the reserves. I urge my right hon. Friend to take advantage of this record level, first, by lifting some of the restrictions on overseas investment, which are too stringent and much too long-standing, and, secondly, by lowering Bank rate, which would be a major contribution towards giving investment the fillip which we all agree it needs.

§ Mr. Macmillan
My hon. Friend will not expect me to comment on his second proposal. On his first proposal, these matters are under constant study and review.

§ Mr. Joel Barnett
As that clearly was a well-planted Question and the Minister obviously has in front of him many replies, will he tell us the cost in terms of increased employment of every £1 million increase in the reserves?

§ Mr. Macmillan
The hon. Gentleman is on a wrong premise. The Government have not sought increases in reserves at the expense of the domestic economy. The high level of reserves reflects the strength of the balance of payments and is an extremely good basis for the reflationary measures which my right hon. Friend has already taken.