HC Deb 29 November 1966 vol 737 cc195-7
18. Mr. Michael Foot

asked the Chancellor of the Exchequer whether he will issue a direction to the Bank of England, in the public interest, that no Governor, Deputy Governor or Director of the Bank shall make speeches on public policy until such speeches have been approved by him.

49. Earl of Dalkeith

asked the Chancellor of the Exchequer what is his current practice in issuing instructions to top executives of the Bank of England to the effect that public speeches made by them should in the public interest secure his approval in advance.

72. Mr. Dickens

asked the Chancellor of the Exchequer if he will ensure that statements on public policy made by the Governor, Deputy Governor or Directors of the Bank of England are submitted to him for prior approval.

Mr. Callaghan

No, Sir. I have issued no instructions in this matter.

Mr. Foot

There may be excellent grounds for permitting these gentlemen to say what they think, but does not my right hon. Friend think that steps should be taken to impress on the Bank of England and on the Governors that they are not a completely irresponsible organisation, and does not my right hon. Friend think, in particular, that it would be a courtesy to the public if the Governors and Deputy Governors of the Bank of England, when they are talking about wages—such as in a recent speech from one of them—would tell us their wages, when they had their last increase, and whether it remotely conformed to the norm which applies to the rest of the community?

Mr. Callaghan

I think that the speeches made by the Governor, Deputy Governor and Directors of the Bank are made responsibly. They are made because they think that they have advice to give, and it should be accepted in the spirit in which it is offered, or rejected if it is not thought to be appropriate.

Earl of Dalkeith

Will the right hon. Gentleman assure the House in the most categoric terms that he will never yield to pressure to gag or censor these gentlemen in view of the catastrophic effects which that would have on overseas confidence in sterling?

Mr. Callaghan

Whatever my inclination, and like my hon. Friend the Member for Ebbw Vale (Mr. Michael Foot) I am not one of those who rush to censor speeches, I have the feeling that it would avail me very little if I were to try to censor the speeches of people like Sir Maurice Laing, Mr. Cecil King, Sir William Carron, Lord Robens, or Lord Nelson.

Mr. Dickens

Is my right hon. Friend aware that many of us on these benches take strong exception to the archaic pre-Keynsian advice being given to the Government from higher quarters in the Bank of England? Is he further aware that these feelings are the more deeply held because we are becoming more rapidly aware that the Bank of England is not publicly accountable to this House?

Mr. Callaghan

No, Sir. I am not aware of the opinion expressed in the last part of the question. As to the first part, I obtain a great deal of advice and help from the Bank of England, and much of it is very useful and very valuable.

Mr. Biffen

Is the right hon. Gentleman aware that when Lord Cromer was Governor he used to make most welcome statements about prestigious public expenditure east of Suez, which might well have come from the hon. Member for Ebbw Vale (Mr. Michael Foot)? Will he, therefore, be very careful before accepting any of the advice proffered to him on this subject from below the Gangway?

Mr. Callaghan

This only shows that I receive varying advice, much of it good, some of which I do not find acceptable.