HC Deb 15 December 1976 vol 922 cc1557-8
Mr. Speaker

In order to save the time of the House, unless there is objection, I shall put the Questions on the two Statutory Instruments together.

Mr. Nelson

Will the Chancellor explain how, if the standby credit facility of $4 billion is drawn down over the next four years, it is to be paid back? Does he agree that if the exchange rate of sterling does not rise, or even if it is maintained, the actual repayment will result in a deficit which will have to be covered by public funds? How will the loan be repaid?

Mr. Healey

All Governments have borrowed abroad to help finance their deficit. In their last year of office the previous Conservative Goverment borrowed £1 million through the public sector at very high rates of interest. The IMF standby is at low rates of interest—4 per cent. to 6 per cent.—to be paid back over three to five years. I expect, and the IMF agrees with us, that we shall move into a substantial surplus in 1978–79 and that the surplus will increase rapidly thereafter as a result of the increasing benefit of North Sea oil.

Following is the information:

Ordered, That the draft Compensation for Limitation of Prices (Post Office) Order 1976 be referred to a Standing Committee on Statutory Instruments, &c. That the Value Added Tax (Education) Order 1976 (S.I., 1976, No.2024) be referred to a Standing Committee on Statutory Instruments, &c.—[Mr. Foot.]