HC Deb 12 December 1957 vol 579 cc1415-6
37. Mr. Rippon

asked the Chancellor of the Exchequer, in view of the fact that the sterling is now undervalued in relation to the internal purchasing power of the dollar in the United States of America, if he will now raise the travel allowance to that country.

Mr. Birch

No, Sir.

Mr. Rippon

While recognising that a great step forward has been taken this year in making the £100 allowance available, may I ask whether my right hon. Friend would agree that the real value of the £ in terms of internal purchasing power in the United States in relation to the dollar is about 4.50 rather than 2.80? Would he not agree that it would make a great contribution to our prestige and standing in the United States, as well as a contribution to confidence in the £, if the restriction were further reviewed?

Mr. Birch

It is true that £100 goes further in this country than it does in the United States of America, and that is equally true of a great many other countries, I may say. But, as my hon. Friend said, this was a step forward and it has been of great assistance, particularly to businessmen, but my right hon. Friend does not see his way to increasing the allowance at the moment.