HC Deb 14 February 1961 vol 634 cc1230-2
31. Mr. Hector Hughes

asked the Chancellor of the Exchequer if he is aware that the present high Bank Rate is handicapping British industry in competing with foreign firms, diminishing British exports, causing unemployment in Great Britain, and depriving Great Britain of foreign currency; and if he will state his plans for assisting Great Britain and British industry and employment in these difficulties.

The Chancellor of the Exchequer (Mr. Selwyn Lloyd)

I do nof accept the hon. and learned Member's analysis of the effects of the present level of Bank Rate. With regard to the second part of the Question, these matters were fully debated by the House on 6th and 7th February.

Mr. Hughes

If the Chancellor does lot accept the implications in the first part of my Question, is he aware that the country's great newspapers do, and that his financial and fiscal policies have caused industrial chaos and much unemployment? If he is unable to deal with the problems himself, will he take expert advice on the subject—from this side of the House?

Mr. Lloyd

The hon. and learned Gentleman will be aware that in January of this year there were 42,000 fewer unemployed than there were in January of last year. As to the other part of his Question, I adhere to Bank Rate as one of the ways of regulating the economy.

Mr. H. Wilson

Even if the right hon. and learned Gentleman does not accept these propositions—most of which are self-evident—does he accept the proposition that higher Bank Rate has increased our National Debt charge by £56 million this year as compared with last—about the level of the additional health charges and economies? Secondly, does he not accept the Treasury's estimate that we are paying an additional £15 million or £20 million for foreign exchange as a result of high Bank Rate?

Mr. Lloyd

I would not accept the right hon. Gentleman's figures without notice, but I quite agree that a high-level Bank Rate does cost money. That is one of its disadvantages. But if it cures excessive demand at home it is beneficial to the economy.

Mr. Wilson

The right hon. and learned Gentleman referred to our economic debate on 6th and 7th February, but is he aware that he did not then refer at all to this problem, and that neither he nor his immediate predecessor has ever answered the very powerful argument on monetary policy put forward by the very authoritative Radcliffe Committee?

Mr. Lloyd

Whether or not matters dealing with the consequences of the Bank Rate were referred to in that debate, it will not have escaped the right hon. Gentleman's notice, I am sure, that since I have been Chancellor of the Exchequer, Bank Rate has been reduced on two occasions.

Mr. Hughes

On a point of order, Mr. Speaker. In view of the very unsatisfactory nature of the reply, I beg to give notice that I will raise the subject on the Adjournment at the very earliest opportunity.