HC Deb 10 November 1955 vol 545 cc2002-3
39. Mr. Warbey

asked the Chancellor of the Exchequer the final deficit in United Kingdom current transactions with the dollar area during the twelve months ended 30Th June, 1955, excluding defence aid.

Sir E. Boyle

I would refer the hon. Member to Command 9585 Tables 6 and 8, item 15, for the latest estimates.

Mr. Warbey

Since the Treasury will not do the addition sum for me, would I be right in saying that the amount of this dollar gap is something like £250 million? In the light of that, will the Government get away from its doctrinaire, free market notions and begin to put forward real measures for closing the gap?

Sir E. Boyle

The answer to the second part of the Question is "No, Sir, certainly not". The answer to the first part is that the current balance, including defence aid, is not minus £250 million, but minus £191 million.

Mr. H. Morrison

Are we to understand from the statement of the Economic Secretary that the Government will take no steps to close the gap, because that is what he said?

Sir E. Boyle

No, but that we will not go back to the war-time economy of physical controls.

40. Mr. Warbey

asked the Chancellor of the Exchequer the amount of gold and dollars lost in transactions with the countries of the Organisation for European Economic Co-operation during the twelve months ended 30th June, 1955, by the sterling area as a whole and by the United Kingdom alone.

Sir E. Boyle

For the sterling area as a whole I would refer the hon. Member for the latest estimates to Command 9585, where he will find them most conveniently set out in Table 9. It is not possible to allot these gold and dollar payments to the United Kingdom and the rest of the sterling area respectively.

Mr. Warbey

As, so far as I can make out, the figure appears to be somewhere very near the total loss of our gold and dollars for the period in question, can the hon. Gentleman explain why the Government agreed this year to increase to 75 per cent. the amount of our E.P.U. deficit which we settle in gold and dollars, and thus add further to the drain on our reserves?

Sir E. Boyle

We believe in the principle of moving to a freer system of trade and payments. I have said that many times in this House, and I stand by that.