§ Mr. George Gardiner
asked the Chancellor of the Exchequer whether he will review the arrangements for providing exchange cover for public sector borrowing overseas: and if he will make a statement.
§ Mr. Lawson
The exchange cover scheme for public sector bodies who borrow overseas has recently been reviewed in the light of the Government's intention to reduce substantially our outstanding foreign currency debt during the lifetime of this Parliament. It has been decided that the interest rate benefit to 75W those who borrow under the scheme, which was increased from ½ per cent. to about 1 per cent. in 1973, should be reduced to ½ per cent. Certain other minor changes have been made in the scheme. Nationalised industries, local authorities and others have been informed of the details.