HC Deb 19 December 1961 vol 651 cc1133-8

The following Questions stood upon the Order Paper:

52. Wing Commander Bullus

To ask the Chancellor of the Exchequer if he will now make a statement on the question of decimalisation of currency.

55. Mr. J. WELLS

To ask the Chancellor of the Exchequer if he will now make a statement on the introduction into this country of a decimal currency.

57. Mr. PROUDFOOT

To ask the Chancellor of the Exchequer if he will now make his promised statement on decimal coinage.

58. Mr. DU CANN

To ask the Chancellor of the Exchequer if he will now make his promised statement upon the proposal to introduce a decimal currency system.

The Chancellor the Exchequer (Mr. Selwyn Lloyd)

As I have already informed the House, the Government have been considering this question in the light of the public interest shown in it, particularly following the Joint Report of the Committees of the British Association and the Association of British Chambers of Commerce.

The Government's view is that real advantage would follow from adopting a decimal currency. At the same time, it is clear that, in view of the widespread use of accounting and other monetary machinery, the transitional cost would be substantial. It should, however, be possible to limit this cost, both by the choice of the size of the new units to be adopted and by careful timing of the changeover. Before reaching a final decision, therefore, the Government consider that there should be a full-scale investigation into the best form of decimal currency, the steps by which the change could be brought about, and the cost of the changeover to the economy as a whole.

The Government have accordingly decided to set up a Committee of Inquiry whose terms of reference will be:

  1. (a) To advise on the most convenient and practical form which a decimal currency might take, including the major and minor units to be adopted.
  2. (b) To advise on the timing and phasing of the changeover best calculated to minimise the cost.
  3. (c) To estimate the probable amount and incidence of the cost to the economy of proposals based on (a) and (b).
I am glad to say that Lord Halsbury has accepted my invitation to be Chairman of the Committee. I shall announce the names of the other members early in the New Year.

The Government are very conscious of the importance of reaching firm decisions in this matter as soon as possible. They will accordingly discuss with the Chairman ways and means by which the Committee may be enabled to make rapid progress with their work.

The other Commonwealth Governments have been informed of our proposals.

Wing Commander Bullus

While thanking my right hon. and learned Friend for that purposeful reply, may I ask him whether he is aware that many of us have an open mind on this question, but that we recognise that it would be logical to make a change which must eventually come? May I further ask him how long it is expected that this Committee will take to report?

Mr. Lloyd

I am aware of the point made by my hon. Friend in the first part of that supplementary question. I certainly would hope that the Committee's report would be available during 1962.

Mr. Proudfoot

Does my right hon. and learned Friend fully appreciate the mounting cost of delay? Will he, to save time, adopt the Bill which stands in my name and the names of several of my hon. Friends? Will he give us the Money Resolution that it may need?

Mr. Lloyd

I think that my hon. Friend will agree that there are very important practical matters to be considered in this connection. Until there has been a further examination of these matters, it is difficult to decide finally whether to proceed with that Bill or to adopt the course of conduct which I advise.

Mr. Gaitskell

Will the right hon. Gentleman make clear whether or not the Government have made a decision in principle in this matter? Is it not the case that the terms of reference of this Committee—which seems quite a sensible idea—seem to suggest that the decision has already been taken? Will he clear this point up?

Mr. Lloyd

The right hon. Gentleman is quite right in noting that the Committee is not being asked to consider the question of "whether", but the question of "how". I say quite frankly that, should its recommendations, or the results of its investigations, appear to present very grave financial and other difficulties, the Government would have to reconsider the question of "whether"; but the Committee is being asked to consider not "whether", but methods.

Mr. Gaitskell

Have the Government decided that we will have a decimal coinage unless the difficulties are overwhelming? Has a decision been taken in that sense?

Mr. Lloyd

That is so. As I have said, the Government's view is that real advantage would follow from the adop tion of a decimal currency, but that the matter must depend a little upon the cost and other relevant considerations. In the light of the findings of the Committee, we will make the final decision. It is a very rational and reasonable approach.

Mr. J. Wells

While thanking my right hon. and learned Friend for his assurance that the Committee will report quickly, may I ask him for a further assurance that there will be quick action following the Committee's report? Will the Committee have its attention drawn to the excellent system propounded in a letter in The Times today by Mr. D. M. Livingstone?

Mr. Lloyd

I have noted what was said in The Times today. I can promise a quick decision. Whether it will be quickly implemented or not will depend upon the recommendations of the Committee.

Mr. du Cann

While congratulating my right hon. and learned Friend on this statement—it is a great stop, too, and one to which many of us have been looking forward for a long time—may I ask him whether, if sterling is to remain an international currency, he will ensure that Commonwealth Governments are closely consulted at all stages by Her Majesty's Government? Does not he think that probably this matter should be considered in relation to standardisation as a whole? Will he also look at that matter?

Mr. Lloyd

I am aware of the point my hon. Friend puts forward in the last part of his supplementary question, but it raises a rather different issue. The Commonwealth Governments have been informed of what I have said. In addition, when I and my colleagues from New Zealand and Australia met in Ghana in September, we discussed this matter. They acquainted me with the position of their Governments. It is important that we should keep in step with other Commonwealth Governments on this matter.

Sir L. Ungoed-Thomas

While I realise that it is important to keep in step with other Commonwealth countries on this matter, may I ask the right hon. and learned Gentleman whether the Commonwealth countries agree to this course? Does he also appreciate that we are fed up in this House with having major decisions of policy given in answer to Questions, instead of being given to the House as statements saying clearly what Government policy is on these matters?

Mr. Lloyd

I do not think that the hon. and learned Gentleman is viewing this matter with his customary clarity of perception. He has asked me about the position of Commonwealth Governments. Canada, Hong Kong, British Honduras, Mauritius, the Seychelles, East Africa, Malaya and Ceylon have decimal currencies. Other countries have recently changed to a decimal system. They are the British Caribbean, Cyprus, Burma, India and the Union of South Africa.

Countries which still have a non-decimal system are Australia, New Zealand, Ghana, Nigeria, Rhodesia, Nyasaland, the Channel Islands, Gibraltar, Malta, certain islands of the West Indies, Pakistan and Fiji. We will certainly keep in touch with the various Commonwealth countries concerned.

Mr. Dugdale

Does the right hon. and learned Gentleman's reply mean that the Government are trying to assist the Lord Privy Seal in his task of getting us as quickly as possible into the Common Market?

Mr. Lloyd

I think that that supplementary question raises a very different issue. It is not, however, totally unconnected.

Mr. Hirst

Is my right hon. and learned Friend aware that the Government have already had plenty of time, and warning, in which to consider this matter, and that we are getting rather tired of government by committee?

Mr. Thorpe

While this Committee is doing this extremely useful work, could it at the same time look at the archaic system of weights and measures?

Mr. Lloyd

I will consider that possibility, but I do not think it likely that the Committee will deal with it.

Sir G. Nicholson

Is my right hon. and learned Friend aware that although theorists and others will consider this a good idea, there is widespread opposition from mostly conservative-minded people, and that the least that the Government can do before wrecking an historic currency is to undertake not to take that step without a direct mandate from the country?

Mr. Lloyd

I think that conservative-minded people will adopt a practical approach to this problem and I hope that the findings of this Committee will assist that process.

Mr. Snow

Meanwhile, will the Chancellor of the Exchequer consider calling for designs so that in future we may have a dignified coinage?

Mr. Lloyd

That is rather a big issue. I will note what the hon. Gentleman has said.

Back to