§ Mr. Robert Sheldonasked the Chancellor of the Exchequer what estimate he has made of the effect on £ sterling through the issue of commerical bills outside the banking system.
§ Sir Geoffrey Howe[pursuant to his reply, 31 March 1980, c. 84]: It is not possible to make a precise estimate of this sort. There has been a substantial increase in the take-up of sterling commercial bills outside the banking system in the last two years, but the effect of such a development on £M3 will have depended on a variety of factors. For example, some of the acceptances are currently held by overseas residents and some residents who have purchased the acceptances would otherwise have held gilts or other public sector debt and not necessarily bank deposits.