§ Mr. Sillarsasked the Chancellor of the Exchequer what are the current international credit facilities available to the Government; what has been drawn to date; and what contingency plans have been laid to renew these facilities or open up new sources of credit.
§ Mr. Joel BarnettAs regards the short-term facilities, there is the $5.3 billion standby facility. The level of drawing at the end of each quarter will be shown in the balance of payments statistics.
As regards medium-term facilities, a drawing of $0.8 billion from the IMF was made in May this year and $3.8 billion—including the temporary 45 per cent increase agreed in Jamaica—remains available in the higher credit tranches. Of the European facilities, the theoretical maximum amounts still available are approximately $0.6 billion under the medium-term facility and $0.7 billion from joint Community borrowing under the current permitted limits. The OECD
Manufacturing Private Non-Manufacturing Non-trading Public Sector Second quarter … … … … 0.3 0.3 1.0 Fourth quarter … … … … 0.6 0.8 1.0 Ultimate effect … … … … 1.0 1.0 1.0 The effects on registered unemployment depend on the pressure of demand in the labour market. At current levels of unemployment the "registration rate" is believed to be about three-quarters.
§ Mr. Nottasked the Chancellor of the Exchequer whether he will estimate the total effect on the growth of GDP of the measures announced on 22nd July.
§ Mr. Denzil DaviesI estimate that by early 1978 the growth of gross domestic product will have been reduced by a little under 1 per cent. by the measures announced on 22nd July. No estimates have been made of the effect beyond that date as the public expenditure decisions refer only to 1977–78.
606WFinancial Support Fund is not yet in operation as it still awaits ratification by other member countries. If ratified, however, it could provide up to $3.6 billion with the approval of a 90 per cent. majority vote.
The means of financing the external deficit is kept under constant review.