§ 27. Mr. St. John-Stevas
asked the Chancellor of the Exchequer, whether he will now take steps to reduce the inflated dollar premium.
§ The Chancellor of the Exchequer (Mr. James Callaghan)
I would refer the hon. Gentleman to my Budget speech.
§ Mr. St. John-Stevas
Does not the fantastic present level of the premium at 26 per cent. indicate how far the Chancellor has succeeded in undermining investment confidence in Britain? Can the right hon. Gentleman confirm that the present rate of the premium is now actually reducing the yield to the Treasury?
§ Sir G. Nabarro
Would the Chancellor hear in mind that the United States of America is Britain's largest export market and that this present very high level of dollar premium is militating against the 205 further expansion of exports to North America?
§ Mr. Callaghan
No, I do not accept that. The hon. Gentleman will not have overlooked what has been happening on Wall Street recently, which may well have affected the premium.