Written Answers To Questions
Friday, 8th July, 1966
Agriculture, Fisheries And Food
Food Additives
asked the Minister of Agriculture, Fisheries and Food whether, in view of the health hazards arising from intensive animal husbandry, he will seek to make it obligatory to declare all non-nutritional additives in food.
Safeguards against risks arising from the use of veterinary products in livestock husbandry, whether intensive or not, are provided by the Therapeutic Substances Act, 1956, and regulations made thereunder, and by the voluntary Veterinary Products Safety Precautions Scheme. The Labelling of Food Order, 1953, as amended, requires the presence of additives in food to be declared in a list of ingredients for all foods which are not specifically exempted from the need to declare ingredients. Proposals for revised regulations on food labelling under the Food and Drugs Act, 1955, which are under discussion with interested parties would have the effect of reducing the number of foods exempt from such declarations.
Ministry Of Defence
Raf Training Flights (Mansfield Area)
asked the Secretary of State for Defence if he will stop the practice of allowing Royal Air Force training flights to fly low over Welbeck Colliery Village, Warsop and Mansfield Woodhouse.
Low flying is an essential part of operational training. The Royal Air Force is, however, very conscious of the need to cause the minimum overall disturbance, consistent with operational and safety requirements, and to this end low flying is done away from the main centres of population so far as possible. It is not, however, practicable completely to avoid all inhabited areas and I very much regret the unavoidable disturbance that may occur from time to time in the places to which my hon. Friend refers.
Education And Science
Secondary Reorganisation (Manchester)
asked the Secretary of State for Education and Science when he will announce his decision on Manchester's proposals for reorganising secondary education.
My right hon. Friend has written today.
Sunday Express (Articles)
asked the Secretary of State for Foreign Affairs whether in accordance with the rules, the articles appearing currently as a serial in the Sunday Express by the former Ambassador to Moscow have been submitted to him for examination before publication.
Yes.
European Economic Community
asked the Secretary of State for Foreign Affairs when he now expects negotiations for British accession to the Common Market to begin.
I would refer the hon. Member to the Answer given by my right hon. Friend the First Secretary of State and Secretary of State for Economic Affairs to the hon. Gentleman the Member for Chelsea (Mr. Worsley) on 7th July.
Hospitals
Private Hospitals, Nursing Homes And Convalescent Homes (Patients)
asked the Minister of Health what is his estimate of the present number of patients in private hospitals, nursing homes and convalescent homes.
The number of patients is not available, but the number of places at 31st December, 1965, in nursing homes—including private hospitals—registered with local authorities was 23,953, and the number in mental nursing homes—including private mental hospitals—similarly registered was 5,383.
Ministry Of Health
Births (Spina Bifida And Hydrocephalus Cases)
asked the Minister of Health if he will provide for each of the years 1961 to 1965 regional details of the number of live births of children suffering from spina bifida and hydrocephalus, and of the number of these who survived the first year of life.
Information is available centrally for 1964 and 1965 only and is limited to conditions observed at birth. The numbers notified were as follows:LIVEBORN INFANTS SUFFERING FROM SPINA BIFIDA OR HYDROCEPHALUS, OR BOTH(England and Wales, with approximate figures for Standard Regions (1964) and revised Standard Regions (1965))
| Standard Region | 1964 |
| Northern | 96 |
| East and West Ridings | 120 |
| North Western | 232 |
| North Midland | 131 |
| Midland | 154 |
| *Eastern | 117 |
| *London and South Eastern | 218 |
| Southern | 85 |
| South Western | 114 |
| Wales I (South-East) | 83 |
| Wales II (Remainder) | 22 |
| Total | 1,372 |
| Revised Standard Region | 1965 |
| North | 103 |
| Yorkshire and Humberside | 149 |
| North-West | 248 |
| East Midlands | 108 |
| West Midlands | 174 |
| East Anglia | 36 |
| South-East | 407 |
| South-West | 98 |
| Wales I (South-East) | 91 |
| Wales II (Remainder) | 16 |
| Total | 1,430 |
It is not know how many of these infants survived the first year of life, nor how many died from other causes, but the total number of deaths at ages under one year assigned to these causes in 1964 and 1965 were as follows:
Standard Region
| 1964
|
| Northern | 78 |
| East and West Ridings | 71 |
| North Western | 133 |
| North Midland | 55 |
| Midland | 106 |
| Eastern | 50 |
| London and South Eastern | 101 |
| Southern | 46 |
| South Western | 58 |
| Wales I (South-East) | 54 |
| Wales II (Remainder) | 11 |
| Total | 763 |
Revised Standard Region
| 1965
|
| North | 67 |
| Yorkshire and Humberside | 66 |
| North-West | 116 |
| East Midlands | 43 |
| West Midlands | 105 |
| East Anglia | 22 |
| South-East | 177 |
| South-West | 39 |
| Wales I (South-East) | 48 |
| Wales II (Remainder) | 17 |
| Total | 700 |
Possum Equipment
asked the Minister of Health how many severely physically disabled there are in Great Britain who would benefit by the supply of Possum equipment.
From information already available I do not anticipate that the number will be large, but until appropriate cases have been individually assessed, I am not able to give a firm figure.
Home Department
Isle Of Man (Admiralty Jurisdiction)
asked the Secretary of State for the Home Department what progress has been made in drafting an Order in Council under the Administration of Justice Act, 1956, to enable the benefits arising from the enlarged Admiralty jurisdiction of the courts to apply to the people of the Isle of Man, in view of the fact that these legal rights have been exercised by the people of England, Wales, Scotland and Northern Ireland for the last 10 years.
I consider, as my predecessors have done, that it is for the Isle of Man authorities, if they so wish, to take the initiative in this matter.
Lorries (Metropolitan Police Escorts)
asked the Secretary of State for the Home Department if he will state the cost to public funds of the Metropolitan Police providing escorts for lorries with abnormally wide loads in 1960, 1961, 1962, 1963, 1964, and 1965.
No record is available of the cost to public funds of the Metropolitan Police providing escorts for lorries with abnormally wide loads, but the estimated cost in respect of abnormal indivisible loads of all kinds was:
| £ | |
| 1960 | 15,342 |
| 1961 | 18,500 |
| 1962 | 20,388 |
| 1963 | 22,040 |
| 1964 | 20,403 |
| 1965 | 21,160 |
Local Government
Civic Amenities Bill
asked the Minister of Housing and Local Government whether he will seek powers to increase the penalty for dumping excavated earth and building debris on unauthorised sites.
This is dealt with in Clause 11 of the Civic Amenities Bill which is being debated on Second Reading in this House today.
Houses (Multiple Occupation)
asked the Minister of Housing and Local Government if he will take steps to amend the law to enable him to deal effectively with landlords who turn their premises into greater numbers of units of accommodation than permitted by the local authority; and what information he has on the number of cases brought to his attention which require enforcement notices to landlords and tenants.
This is one of many points my right hon. Friend is considering following a study which he has had made of the problems arising from houses in multiple occupation. He has no comprehensive statistics on the use which local authorities make of their powers.
Accommodation Agents (Sale Of Furniture)
asked the Minister of Housing and Local Government if he will take steps, by legislation or otherwise, to prevent the practice of accommodation agents offering furniture for sale with such accommodation; and if he will make a statement.
It can be a convenience for an incoming tenant to be able to buy furniture in this way. To demand excessive prices in such sales is an offence under existing law, and my right hon. Friend is not satisfied that amendment is needed. He will be glad to consider any evidence that my hon. Friend may like to send him.
Agricultural Land And Buildings (Rating Exemption)
asked the Minister of Housing and Local Government if he will give an estimate of the rateable value of agricultural properties in England and Wales which are de-rated.
Agricultural land and buildings exempted from rating have not been entered in valuation lists since 1929; so I have no basis for an estimate.
Ministry Of Labour
Seamen (Rates And Earnings)
asked the Minister of Labour by what percentage he estimates that the rates and earnings of seamen have increased as a result of the recent settlement between shipowners and the National Union of Seamen.
It is not possible to provide separate estimates for rates and earnings. It has been estimated that the settlement will increase the total wage Bill of the industry by about 9½ per cent. spread over a two-year period, subject to some reductions in overtime.
Confectionery Workers (Wage Structure)
asked the Minister of Labour what proposals he has to promote a separate wage structure for confectionery workers as proposed by paragraph 66 of the National Board for Prices and Incomes Report No. 17, on Wages in the Bakery Industry.
Negotiations are currently taking place on this matter in the National Joint Committee of the Baking Industry in England and Wales.
Manual Workers (Earnings)
asked the Minister of Labour whether he will arrange for a further study of the distribution of earnings of manual workers, similar to the one carried out in October, 1960, and published in the April and June, 1961, issues of the Ministry of Labour Gazette.
I do not propose to carry out a survey similar to that carried out in October, 1960. Distributions of the earnings of manual workers are now being produced annually from the results of the Family Expenditure Survey which is shortly to be expanded in size in order to provide more accurate information.
Pensions And National Insurance
Retirement Pension
asked the Minister of Pensions and National Insurance if she will now introduce an increase in the basic national retirement pension to catch up with rises in the cost of living since the last increase was made.
I would remind my hon. Friend that pension rates are about 18 per cent. higher than in October, 1964, against a rise in the Retail Prices Index of just over 8 per cent.
Telephone Service
Kiosk, Coleraine
asked the Postmaster-General whether he will provide a telephone kiosk for the Windy Hill estate at Coleraine, County Londonderry.
The need is under examination and I will write to the hon. Member.
Post Office
Parliament House, Edinburgh
asked the Postmaster-General (1) what is the annual cost of operating the Post Office in Parliament House, Edinburgh;(2) what is the normal annual revenue of the Post Office in Parliament House, Edinburgh; and how much of the total receipts is accounted for by the sale of law court stamps.
The annual cost of operating this Post Office is about £1,700 a year. Revenue is about £35,000 a year, of which some £26,000 is accounted for by the sale of Law Court stamps.
Scotland
Power Station (Site)
asked the Secretary of State for Scotland whether he proposes to site a further nuclear power station at Hunterston.
The type and location of the next major generating station in Scotland is at present under consideration.
Bracken Control
asked the Secretary of State for Scotland what progress his Department is making with the problem of bracken control.
The area treated with the aid of the 50 per cent. grants available for bracken control work has averaged about 14,000 acres per year in Scotland during the five years to 1965 although there has been a decline in the number of applications for assistance over this period.With the increasing difficulty in obtaining labour, and with rising costs, no significant reduction in the remaining areas of infestation can be expected with the present methods of control, i.e., cutting, bruising or crushing.
I hope that eventually a satisfactory chemical spray, or sprays, may be developed which would enable a new attack to be made on the problem. My Department is keeping in close touch with research in this field.
Technology
Nuclear Power Systems (Replication Of Design)
asked the Minister of Technology whether he is satisfied that the benefits of replication in design and costing factors will be fully exercised in future domestic installations, and also through the efforts of the British Nuclear Export Executive in the sale and supply of British nuclear power systems overseas; what percentage of cost factor such replication is expected to realise; and if he will make a statement.
Although there are cost benefits to be obtained from replication of design, it should also be possible to reduce generating costs by advances in reactor design and increased reactor output. These factors have to be assessed and balanced in considering future power stations. It is not possible to quantify at this stage the cost advantage to be expected from replication of design.As regards exports, I understand that the British Nuclear Export Executive will do all that lies in its power to secure economies by this means.
Board Of Trade
Bank Holidays
asked the President of the Board of Trade what dates in 1969 will be allocated for Bank Holidays, in view of the necessity for those who have to make long-term arrangements to have this information.
Before deciding on changed dates for Bank Holidays in 1969 I shall wish to study not only our experience with the move of this year's August Bank Holiday to the end of the month, but also any effects on next year's summer holiday pattern caused by the examinations for the General Certificate of Education being again advanced from July to June.
Cotton Textiles (Import Control Scheme)
asked the President of the Board of Trade whether he will make a statement about the final arrangements for the control of imports of cotton textiles.
We have now completed prolonged discussions with most of the cotton textile exporting countries concerned at two successive meetings of the G.A.T.T. Cotton Textiles Committee and in a series of bilateral meetings. In framing our final control scheme, I have taken careful account of the views which exporting countries have expressed to us, and I have gone as far as I could to meet them consistently with our declared objective of securing a total limit on our cotton textile imports from sources covered by country or global quotas.With effect from 1st January this year, imports from India and Hong Kong will be limited to the quotas which they held in 1962–65, namely 11·5 million 1b. of yarn and 195 million yards of piece-goods and made-up articles from India; and 6·3 million 1b. of yarn and 185 million yards of piece-goods and made-up articles from Hong Kong.Imports from other affected countries will be limited to the average level of their total exports to us in the years 1962, 1963 and 1964 with a 10 per cent. addition in the case of piece-goods and made-up articles. The totals are accordingly 8·5 million 1b. of yarn and 131 million yards of piece-goods and made-up articles. Within these total figures each of these countries will be allocated a country quota equivalent to half of its individual average exports in those years; and for those countries which sent us finished cloth and made-up goods there will be a further small quota for such goods. The remainder of the amounts available will be open to all the countries affected, except of course India and Hong Kong, on a global quota basis. That is to say that licences for the balance can be used by importers to buy from any of the countries concerned.It is my intention that this scheme shall continue until 1970. But in 1967 and each year thereafter, the level of imports from affected countries will be increased by 1 per cent.
Imports from affected countries will be divided into categories to prevent an excessive concentration on particular products or sectors of trade.
Detailed information on the scheme will be circulated to the countries concerned and made available in a Notice to Importers, which is being issued today.
I have made it clear to the British industry that these arrangements have been planned so that by 1970, the reorganisation now proceeding, together with any other necessary measures, will enable it to face its overseas competitors as an efficient and viable industry; and the Cotton Board has agreed to participate in a major study of the means of promoting productivity to ensure that the breathing space provided by these measures is used to the best advantage.
Unit Transport Services
asked the President of the Board of Trade whether he will publish as a White Paper the document entitled Unit Transport Services prepared by the Board of Trade for the Economic Development Committee for the Movement of Exports.
No.
Motor Insurance
asked the President of the Board of Trade what steps he proposes to take to protect the policy holders of the Fire, Auto, and Marine Insurance Company Limited; and if he will seek to amend the law to provide for a stricter financial qualification to set up motor insurance businesses in the future.
Announcements have been made advising policy-holders of this company to take out new insurance policies immediately for their own protection. I am considering what amendments to the Insurance Companies Act, 1958, may be desirable.
Railways
Workshop Employees (Retraining)
asked the Minister of Transport what progress has been made in the discussions between British Railways and the unions concerned regarding the retraining of redundant tradesmen of the boilermaker and kindred trades in British Railways workshops to make good shortages of electricians, fitters and other skilled trades.
The British Railways Board informs my right hon. Friend that within the framework of national agreements covering the retraining of all categories of staff, specific arrangements for particular groups facing redundancy are discussed locally at each works. The Board tells her that no discussions about retraining of the kind indicated by the hon. Member are taking place at present.
Victoria Line (Extension)
asked the Minister of Transport (1) in view of the increasing use of the Crystal Palace site as an exhibition and sports centre, what proposals she has received from the London Transport Board to extend the Victoria Line to Crystal Palace; and if she will make a statement;(2) if she will give an estimated date for completion of the extension of the Victoria Line to Brixton.
My right hon. Friend is still considering London Transport's proposal to extend the Victoria Line to Brixton. London Transport have not submitted proposals to extend the line to Crystal Palace, although such an extension is being tested in the London Transportation Study. Crystal Palace is served by two British Rail lines, both with spare capacity, and one of them terminating at Victoria.
Roads
Road Junction, Finedon (Accidents)
asked the Minister of Transport how many accidents have occurred at the junction of the A6 and A510 at Finedon, Northamptonshire, in each of the past three years.
The information is as follows:
| Twelve months ending 30th June | Accidents involving personal injury | Persons injured | ||
| Fatally | Seriously | Slightly | ||
| 1964 | 2 | NIL | NIL | 3 |
| 1965 | 6 | NIL | 6 | 7 |
| 1966 | 6 | NIL | 2 | 7 |
During this period the police also received reports of 10 accidents at the junction not involving personal injury.
Gregory Street, Sudbury
asked the Minister of Transport when she intends to approve the allocation of funds for the improvement of Gregory Street, Sudbury, in view of its use in by-passing the centre of the town, its narrowness, the building of the fire station, the existence of one pavement only, and the hazards to 300 work-people who have to step directly into the road.
The West Suffolk County Council have plans to carry out this work in 1967–68.
One-Way Streets (Central Refuge)
asked the Minister of Transport (1) how many road accidents were caused by or affected by centre-road bollards and lamp-post fixings in one-way streets; how many of these obstructions have been smashed or damaged for any reasonably stated period of time in any declared area; and if she will take steps to remove these hazards to pedestrians forthwith;(2) whether she is aware of the dangers to road users, both pedestrians and motorists, of some one-way streets and roads where lamp-posts are fixed in the centre of the road at intervals of 20 to 30 yards; and whether she will take steps to arrange for these lamp-posts to be removed to the side kerb or for overhanging street lighting to be installed.
General figures, as requested in my hon. Friend's first Question, are not available from the periodical returns sent to my Department. Figures obtained by the Department's experimental unit in Warwickshire show that in that County and in the County Borough of Coventry, only two out of about 10,000 personal injury accidents involved impact with central refuges in one-way streets.My right hon. Friend has no doubt that in one-way streets central refuges—including those around lamp posts—contribute to safety, especially for pedestrians. Experience in London is that after the introduction of one way traffic—with the general retention of central refuges —there was a reduction not only in the pedestrian casualty rate, but also in that for all road users.
Roadwork, Oakengates (Warning Signs)
asked the Minister of Transport if she is satisfied that sufficient account is taken of road safety hazards in signposting the repairs now being undertaken on the A5 near Oakengates; and if she will make a statement.
According to our information, the series of signs provided to draw attention to these hazards was adequate. However, as my right hon. Friend has received a complaint about them, she is having further inquiries made into the matter.
East Brent-Exeter Road (Survey)
asked the Minister of Transport when the surveys carried out in Somerset by the Somerset County Council and in Devon by an independent firm of surveyors of the route of an improved road from East Brent to Exeter were completed and submitted to her; what those surveys recommended; and when she will announce what action she proposes to take as a result of those recommendations.
My right hon. Friend received a report in January giving the results of the traffic survey and recommending what form of improvement was considered necessary. This is still under consideration in the context of the development of her plans for the improvement of inter-urban roads in the 1970's. In the meantime, she also received in February, a preliminary report on possible alternative routes but work on this aspect will not be completed until next year.
Transport
Motor Cars (Safety Design Features)
asked the Minister of Transport (1) if she will introduce a regulation requiring the doors of new motor cars to be fitted with anti-burst locks;(2) if she will introduce regulations requiring the dashboards on new motor cars to be padded and knobs and controls recessed;
(3) if she will introduce regulations to compel manufacturers to construct the steering columns of motor cars in such a way that the risk of drivers being impaled on them in collisions is reduced.
These safety design requirements are certainly desirable and many British cars achieve these effects by one means or another. Safety design features are a subject of continuing discussion between our Mechanical Engineers and the motor manufacturers.Regulations making these requirements compulsory would need to be based on precise standards specifying how these effects can best be obtained in all types of vehicle construction. In the absence of such standards, regulations would present serious difficulty and might hamper the development of better designs.My right hon. Friend's Working Party on the Motor Vehicles (Construction and Use) Regulations, in which the manufacturers take part, will study the problem in the light of progress in developing such standards.
Lorries (Abnormal Loads)
asked the Minister of Transport if she is aware that, owing to the shortage of police, it is impossible for policemen to escort every lorry with an abnormally wide load; and if she will therefore increase the period of notice which hauliers must give before the movement of such loads.
It is not the practice of the police to escort every abnormally wide load; the matter is left to the discretion of the Chief Constable of the Area concerned. No representations have been made by the police that the current period of notice is insufficient, but my right hon. Friend would be prepared to consider an increase if it were established that this was necessary.
Motor Vehicles (Construction And Use) Regulations
asked the Minister of Transport whether she will introduce changes in the Motor Vehicles (Construction and Use) Regulations to meet the criticisms made of these in Appendix VIII of the Economic Development Committee for the Movement of Exports.
My right hon. Friend is considering the recommendations made in Appendix VIII of this Report. While she is anxious not to restrict unnecessarily the most efficient movement of our exports to Europe it is too soon to say how far she will be able to meet the recommendations.
National Finance
Income Tax (Personal Returns)
asked the Chancellor of the Exchequer how many personal Income Tax returns for 1965–66 have been received to the nearest convenient date; and how this compares with the personal Income Tax returns for 1963–64 and 196465 in a similar period.
This information is not available.
Overseas Investment (Voluntary Programme)
asked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT the terms of his guidance regarding the curtailment of investment in the more developed countries of the sterling area; to which individuals and institutions such guidance has been addressed; and what response has been received.
Yes. I reproduce below the text of a Treasury Press Notice about the Programme and of a letter which I have sent to the chairmen of over 200 companies. I have received replies from nearly every one of them, expressing their willingness to co-operate, and I am very grateful for the response.
Following is the Notice:
OVERSEAS INVESTMENT
In accordance with the Voluntary Programme announced by the Chancellor of the Exchequer in his Budget Speech, Her Majesty's Treasury issue the following statement concerning overseas investment by residents of the United Kingdom.
Direct Investment
2. The aim of the Voluntary Programme is that for the time being direct investments overseas should in general be confined to those for which the funds are provided by appropriate borrowing abroad, or from normal retained profits of an overseas company (i.e. the average level retained over a representative period in the recent past), or where the investment promises an early, substantial and continuing benefit to the United Kingdom balance of payments. The benefit should be in the form of export earnings, or other current income remitted to the United Kingdom, equal or exceeding in value the original capital outlay within 2–3 years and continuing thereafter. Exports of capital goods etc., which are part of the investment itself, being either free of payment or paid for out of capital moneys provided for the investment, do not in general count towards the fulfilment of the criterion.
3. These criteria are intended to apply to direct investments over £25,000 a year (in any one country) outside the Scheduled Territories and in the main developed countries of the Sterling Area (Australia, New Zealand, South Africa, Irish Republic). They do not apply to investment in the less developed countries of the Sterling Area.
4. Firms and individuals planning direct Investments over £25,000 a year in Australia, New Zealand, South Africa, or the Irish Republic, are asked to reconsider their plans in relation to the criteria. In all such cases where it is intended to proceed with plans for investment in these countries, i.e. where a project is considered within the categories indicated, or where special factors may apply, the firm or individual concerned is requested to send details to the Bank of England (Overseas Investment Office), preferably through their bankers. The Bank of England will discuss the matter with the firm concerned in the light of the information provided. These arrangements cover all plans for investment however financed.
5. Direct investments outside the Scheduled Territories are subject to exchange control. Approvals will continue to be given for the use of investment currency for projects which meet the criterion of early, substantial and continuing benefit to the United Kingdom balance of payments. Approval will not normally be given for projects over £25,000 a year which do not meet the criterion, unless they are financed by appropriate borrowing abroad.
Exports Free Of Payment
6. In general, exchange control permission will not normally be given for investment in the form of exports free of payment to destinations outside the Scheduled Territories, except in cases which meet the criterion. Firms planning to make investments by exports free of payment to Australia, New Zealand, South Africa. or the Irish Republic are requested to consult the Bank of England.
Portfolio Investment
7. Investment trusts, insurance companies and other institutional investors are asked to adhere to the Voluntary Programme by keeping in mind the need for parallel restraint in their purchases of overseas securities. While no interference is intended with day to day management of portfolios, the aim is that for the time being there should be no net increase over a period in their present total holdings of overseas securities other than those of the less developed countries in the Sterling Area.
Control Of Borrowing Order
8. Where borrowing in the United Kingdom by residents of Australia, New Zealand, South Africa and the Irish Republic requires consent under the Control of Borrowing Order, such consent will be given only in cases which meet the criterion of early, substantial and continuing benefit to the U.K. balance of payments. Borrowing by residents of other Sterling Area countries will continue to be permitted if it is deemed advantageous to the economy and balance of payments of the territory concerned, provided that there is no demonstrable and avoidable detriment to the United Kingdom balance of payments. Applications by central governments in the Overseas Sterling Area or the European Free Trade Association, borrowers whose issues are guaranteed by these governments, and public bodies in less developed Commonwealth countries will continue to be dealt with individually.
Text Of Letter From The Chancellor Of The Exchequer
Treasury Chambers,
Great George Street,
London, S.W.1.
9th May, 1966.
Dear Chairman,
In my Budget Speech on 3rd May I announced a Voluntary Programme to slow down for the next year or two the flow of investment overseas. I am now writing to you, as to many other chairmen of companies concerned with direct investments overseas, to ask you personally for your support and for the co-operation of your company in making a success of the Voluntary Programme.
I need not repeat what I said in my speech about the reasons for this appeal. It is part of a many-sided campaign to get our balance of payments right. Action is needed, and is being taken, in various fields.
In present circumstances the resources which the nation can afford for overseas investment are limited. For the time being we need to concentrate our efforts on those types of investment which will be of most immediate benefit to our balance of payments. Other types of overseas investments, desirable though they may be in the longer run, must be deferred—unless the funds for them can be raised abroad—until the nation can fully meet their cost. Otherwise we put ourselves increasingly in debt.
The Voluntary Programme applies to investments in the developed countries of the sterling area—Australia, New Zealand. South Africa and the Irish Republic. It embodies a general criterion by which investments financed from this country should be judged. This is that they should give promise of a quick, substantial and continuing benefit to the United Kingdom balance of payments. By quick I mean such as is sufficient to equal the cost of the investment in a comparatively short period—say two to three years. The benefit may take the form of starting up a new and continuing stream of exports, or an exceptionally large and rapid return in profits earned and remitted from the investment, or a mixture of both. Details are given in the Press Notice issued by the Treasury on 3rd May, of which a copy has been sent to your company. I shall be grateful if you will examine your plans against this test.
In doing so I should like you to consider first whether you can postpone any of your plans for the time being. Second, I hope you will make every effort to find finance from outside this country for any projects which in your view cannot be postponed. Finally, when you have decided what plans you want to go on with, I would be grateful if you would consult the Bank of England before proceeding with anything involving capital expenditure, however financed, of over £25,000 a year. The Bank has opened a new office—the Overseas Investment Office—which is ready to give advice and to discuss your programmes of investment with you.
The Voluntary Programme is a new development in our economic policies. I have asked the Bank of England to keep in close touch with the Treasury and to report to me any special difficulties that may be encountered. Meanwhile, I should be grateful for your cooperation and that of your company in the Programme and I look forward to hearing from you. With everyone's help the campaign will play an important part along with the other measures we are taking to achieve success in restoring and maintaining a healthy balance in our external accounts.