§ Mr. Oakesasked the Chancellor of the Exchequer what arrangements are being made for regulating borrowing in foreign currencies by nationalised industries and local authorities.
§ Mr. Roy JenkinsMy right hon. Friend the Financial Secretary announced earlier in the year that the Government had decided to encourage local authorities and nationalised industries to meet a proportion of their borrowing needs by medium and long-term borrowing in foreign currencies, and would be prepared in suitable cases to provide special arrangements which would relieve the borrower of the exchange uncertainties associated with such borrowing.
Experience has confirmd the need for regulation of the size and timing of such borrowings in relation to the conditions prevailing in the markets concerned. The Bank of England has undertaken to consider proposals, co-ordinate and control the flow of borrowing in the light of availability of funds and market conditions, and advise the Treasury on the issue of consents and the provision of special exchange arrangements. Local authorities and nationalised industries with proposals for borrowing in foreign currencies are being advised to consult the Bank of England or authorise their bankers or brokers to do so on their behalf.