§ 11. Mr Peter Morrisonasked the Chancellor of the Exchequer how he intends to fund the public sector borrowing requirement for the present financial year.
§ Mr. Joel BarnettIt is not the practice to provide forecasts of the financing of the public sector borrowing requirement. My right hon. Friend the Chancellor of the Exchequer has recently emphasised his objective of financing a high proportion of the borrowing requirement by sales of gilts outside the banking system.
§ Mr. MorrisonIs the right hon. Gentleman satisfied that this year's borrowing requirement can be funded without any detrimental effect on the rate of inflation or on industry?
§ Mr. BarnettYes, Sir.
§ Mr. WrigglesworthWhat will be the implications for interest rates and money supply if the public sector borrowing requirement is left at its present level in the coming two years?
§ Mr. BarnettThere will be a serious problem in the next few years if borrowing remains at a very high level. [HON. MEMBERS: "Hear, hear."] I am glad to have the support of the Opposition, and, indeed, of anybody else who understands that the Government's broad aim is to ensure that our industrial strategy succeeds. That means that the maximum amount of resources should be made available for industry.
§ Mr. David HowellThe Chancellor of the Exchequer was reported yesterday as having said that cuts in public spending and reduced borrowing were necessary to stop another slide in sterling. Can the Chief Secretary say how much of the $5,000 million standby credit has been drawn in the meantime?
§ Mr. BarnettNo, Sir.