Orders of the Day — Economic Situation

Part of the debate – in the House of Commons at 12:00 am on 19 March 1962.

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Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale 12:00, 19 March 1962

I think that the phrase "hot money" is a pejorative term. What it means is liquid funds, which can be transferred as the owners of those liquid funds feel it is worth while moving into this country, because they think that Britain's economy is sound. That is why it is so important to have sound economic policies which will retain the confidence of overseas investors over the short, medium and long term in this country.

The hon. Member for Cardiff, South-East very modestly referred to the fact that he had done a lot of reading. I should like to be the first to congratulate him on the extent of the reading he has done and on making such an interesting speech this afternoon. I find these subjects complicated myself. I do not want to appear to lecture him about the difference between the trade gap and the balance of payments, but I would just say that there is a bit more reading for him to do. He referred to the monthly figures; but the trade figures represent the value of the movement of goods outwards from this island and inwards into this island, f.o.b. for the goods moving out, c.i.f. for the goods coming in. And there he will see the difference between the two.