HC Deb 13 May 1976 vol 911 cc662-3
14. Mr. Hooley

asked the Chancellor of the Exchequer what action he proposes to take to strengthen exchange control rules especially in relation to dealings on commodity markets, including metals.

Mr. Robert Sheldon

Certain aspects of exchange control, including dealings in the commodity markets, are currently under special scrutiny. If this should show that the rules need strengthening, the necessary changes will be made.

Mr. Hooley

I welcome my hon. Friend's statement about special scrutiny. Is he aware that certain specialist journals in the United States have pointed out that the evasion of currency regulations and tax evasion are technically possible because of the methods used on the London Metal Exchange? Will he go carefully into that matter?

Mr. Sheldon

I assure my hon. Friend that these matters are closely watched. As he may know, participants in these schemes submit monthly returns to the Bank of England. These returns can be scrutinised and, on the basis of those returns, further action can be and often is taken.

Mr. Hooson

What is the value to the balance of payments of having the Metal Exchange in this country?

Mr. Sheldon

About £100 million.

Mr. Lipton

By whom is this special scrutiny being conducted? Is it only the Bank of England, the Treasury, or the police, or any two or all three of them?

Mr. Sheldon

This scrutiny is undertaken by the Investigation Department of the Treasury, which employs officers for that purpose.

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