HC Deb 31 October 1979 vol 972 cc527-8W
Mr. Denzil Davies

asked the Chancellor of the Exchequer what action the Government propose to take, in view of the abandonment of exchange controls, to strengthen control over the money supply, in view of the opportunities for avoiding the present controls by the use of offshore banking facilities.

Mr. Lawson

The main means of achieving monetary control remain the control of the PSBR and adjustments in the level of interest rates. The effects of the abolition of exchange control will be clearly one of the factors which need to be taken into account when the Government consider whether to roll forward the SSD scheme, which currently extends to mid-December. Consideration of other techniques of monetary control will also take account of this factor.