§ 4. Mr. Hugh Jenkinsasked the Chancellor of the Exchequer if he will introduce legislation to prevent speculation in currency.
§ Mr. BarberNo, Sir. There are already extensive powers in the Exchange Control Act 1947.
§ Mr. JenkinsIs it not plain that the activities of the multi-national companies are affecting the external value of the pound to a much greater degree than internal inflation? Is it not absurd of the Government to be so hard on hospital workers and soft on international speculators? Will the Chancellor do something about it?
§ Mr. BarberThe hon. Member misunderstands the situation. Obviously, we have no means of controlling speculation by non-residents—
§ Mr. JenkinsMulti-national companies are resident here.
§ Mr. Barber—and transactions by United Kingdom residents in foreign currency unconnected with commercial operations are illegal.
§ Mr. DykesDoes my right hon. Friend the Chancellor agree that speculation, in the sense of speculators rather than finance directors of companies and their activity, has been minuscule this time, with the flotation of the pound, compared with 1967.
§ Mr. BarberUnited Kingdom residents —and that includes multi-national companies in the United Kingdom—are subject to the exchange control rules—
§ Mr. JenkinsThey are fiddling all over the place, and the right hon. Gentleman knows it.
§ Mr. Barber—as they were under the previous Government, and transactions by them in foreign currency which are not connected with commercial operations are illegal.