§ Mr. Gwilym Robertsasked the Chancellor of the Exchequer what study he has made of the use of credit cards in order to exceed the personal sterling currency limits on spending by British tourists overseas; what estimates are available for the sums involved; what steps he is taking to curb this excess spending; and if he will make a statement.
§ Mr. Robert SheldonA British tourist may draw on demand from his bank, or other agency so authorised, up to £300 in foreign currency facilities for each journey outside the Scheduled Territories. With the approval of the Bank of England, additional amounts may be drawn provided it is clear that the facilities are required to meet genuine travel expenditure.
The use abroad of credit cards issued by companies resident in the United Kingdom is permitted. Such companies agree with the Bank of England the uses to which their cards may be put, and are advised by Bank of England later of the terms under which they may reimburse non-resident suppliers and affiliates. The companies in turn advise 388W the credit card holder on the use of the card outside the Scheduled Territories, which broadly limits use to meet genuine travel expenditure.
I regret information is not available of the total sum involved by the use abroad of credit cards. I see no need to curb the use, nor make a further study, of the use of these cards abroad. But of course, if in the future it should emerge that this facility was abused then I would not hesitate to take action.