HC Deb 25 July 1972 vol 841 cc1512-3
3. Mr. Rost asked

the Chancellor of the Exchequer what policiesor programmes of voluntary restraint or voluntary action, requested or administered by either the Treasury or the Bank of England, have been in operation at any time since the beginning of 1970; and which are still in operation.

Mr. Nott

The voluntary programme restraining direct and institutional portfolio investment in Australia, New Zealand, South Africa and the Irish Republic and the voluntary arrangements for limiting the financing in sterling of stocks of silver were both ended earlier this year.

Mr. Rost

If the programme of voluntary restraint on investment, especially in developed countries, is genuinely voluntary, can my hon. Friend assure us that no discrimination or penalties will be applied to any firms which do not conform?

Mr. Nott

Myhon. Friend will be aware of the new exchange control arrangements announced following the floating of sterling. There is no voluntary programme here now. My right hon. and hon. Friends think that it is better to have a statutory arrangement rather than a voluntary programme. That is now what we have.

Dr. Gilbert

Talking of restraints imposed by the Bank of England, does the hon. Gentleman recall that the Bank of England asked all accredited foreign exchange dealers to report their positions on short sterling as of 22nd June? What were the results of those reports? Have any dealers been found to be in excess of their posititons and, therefore, speculating against the £. If so, what steps does the Chancellor of the Exchequer propose to take?

Mr. Nott

If the hon. Gentleman cares to put down detailed Questions of that sort—and if it is usual to answer them—he will get an answer. Foreign exchange dealers and authorised dealers are customarily required to make regular returns to the Bank of England. That is a system which has existed for a great number of years.