HC Deb 21 May 1973 vol 857 cc37-8
28. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what progress he has made in financing the public sector borrowing requirement in the current financial year; and if he will make a statement.

The Minister of State, Treasury (Mr. John Nott)

Good progress, Sir.

Mr. Bruce-Gardyne

I am delighted to have that most informative reply from my hon. Friend. Can he state the extent to which, apart from the useful further information that we shall obtain from my right hon. Friend the Chancellor of the Exchequer in a few moments, the progress of the Government's efforts to finance the borrowing requirement has been assisted by borrowing by the nationalised industries—the Electricity Council especially?

Mr. Nott

Borrowing overseas will not have any effect on the size of the borrowing requirement. Transactions through the Exchange Equalisation Account in sterling are still required within the domestic economy, even when money is borrowed abroad in foreign currency.

Mr. Paget

Does the hon. Gentleman agree that the use of foreign funds for investment in this country is highly beneficial to the country and should be encouraged?

Mr. Nott

I did not quite catch what the hon. and learned Gentleman said, but if he was suggesting that investment by overseas companies in this country was advantageous the answer is "Yes".