HC Deb 25 July 1972 vol 841 cc1515-6
12. Mr. Dixon

asked the Chancellor of the Exchequer whether he will now consider an early revision of the exchange control regulations, in so far as these relate to what is commonly called the 25 per cent. surrender rule.

28. Mr. Dykes

asked the Chancellor of the Exchequer what steps he intends to take to harmonise the operation of the premium currency markets in respect of investments denominated in dollars and other foreign currencies and OSA transactions.

Mr. Patrick Jenkin

My right hon. Friend does not at present contemplate any change in the rules governing investment by United Kingdom residents in foreign currency securities. I cannot yet say what arrangements will be appropriate in the longer term.

Mr. Dixon

Does my hon. Friend agree that under the regulations as they now stand, portfolio investment for pension funds and investment trusts is greatly inhibited and that, in addition, over the long term this has a bad effect on our balance of payments?

Mr. Jenkin

I recognise that the scheme is unpopular among those who have to manage foreign portfolios, but I ask them to recognise in turn that there is little doubt that the inflow of foreign exchange which it produces continues to make a useful contribution to the strength of sterling.