HC Deb 20 June 1997 vol 296 cc335-6W
Mr. Mitchell

To ask the Chancellor of the Exchequer when the prohibition of overdraft facilities with the Bank of England in article 104 in the Maastricht treaty will come into effect. [1447]

Mrs. Liddell

In accordance with Article 109e(3), Article 104 took effect at the start of the second stage of Economic and Monetary Union on 1 January 1994.

However, paragraph 11 of Protocol 11 to the EC Treaty states that "the United Kingdom may maintain its 'ways and means' facility with the Bank of England if and so long as the United Kingdom does not move to the third stage [of Economic and Monetary Union]".

Mr. Heald

To ask the Chancellor of the Exchequer what is his estimate of the outstanding ways and means advance from the Issue Department at the Bank of England to the National Loans Fund at the end of the current financial year. [3561]

Mrs. Liddell

Outstanding ways and means advances from Issue Department at the Bank of England to the National Loans Fund at the end of 1996–97 were £14,322 million. Whilst current Government policy is to keep the stock of short-term financing (both the ways and means advance and Treasury bills) roughly constant from year-to-year, its composition depends on fluctuations in the month-to-month pattern of factors affecting the liquidity position of the banking system, including the note issue and net government receipts or payments. As these can be large and unpredictable, it is difficult to give a meaningful forecast of the ways and means advance for the end of this financial year.