James Morris MP questions Chancellor over IMF loan
23rd April 2012
Following the Chancellor’s statement to the House of Commons about the Government’s decision to lend £10 billion to the IMF, James Morris calls for reassurance that the IMF will not necessarily use it in the eurozone and that stringent monitoring mechanisms will apply.
James Morris (Halesowen and Rowley Regis) (Con): My constituents have legitimate concerns whenever large amounts of money are placed in international institutions. Will the Chancellor therefore confirm that the money Britain has loaned to the IMF can be used globally and not necessarily in the eurozone, and that the IMF will use its normal, stringent mechanisms for ensuring that the money is spent wisely?
Mr Osborne: I can tell my hon. Friend that his west midlands constituents will not have to pay any more taxes for the loan and will see no cuts in public services as a result of it. The money comes out of the foreign exchange reserves—the foreign currencies that Britain holds and always has held. I would also say to the people of the west midlands and elsewhere that the money is available for all countries in the world that get themselves into difficulties. They have to meet certain conditions—very tough conditions—before they get access to the money, but if the world did not have a global institution such as the IMF, we would be in a much worse place. All the manufacturers and exporters in the west midlands understand that problems in the world economy and our export markets come back to bite us very quickly indeed.