HC Deb 18 October 1966 vol 734 cc15-6
18. Sir C. Osborne

asked the Chancellor of the Exchequer what are the reasons for publishing monthly figures of gold and dollar reserves, as these are inaccurate and misleading, and if he will discontinue the practice.

Mr. Callaghan

No, Sir.

Sir C. Osborne

What is to be gained by giving the people of this country false information? Secondly, why is the right hon. Gentleman afraid of telling our people the truth when the international bankers know what the facts are? Why is the right hon. Gentleman afraid of telling the people the truth?

Mr. Callaghan

The figures given of the monthly reserves are quite accurate——

Sir C. Osborne

They are not.

Mr. Callaghan

—but the practice has grown up over recent years—and I think that it is a desirable practice—under which central banks, through co-operation, offset the flow of short-term movements. This is desirable in the interests of world trade and stability of the exchanges, and I see no reason to discountenance the practice.

Sir W. Bromley-Davenport

Is the right hon. Gentleman aware that on one of the last occasions on which these figures were published the whole of the City rocked with laughter? Is that because these figures are regarded as being as "phoney" as the promises made by the Socialist Government at the last election?

Mr. Callaghan

I am not aware of the occasion to which the hon. and gallant Gentleman refers. I think it is well known that the monthly reserves figures are accurate in respect of the transactions which they cover. I hope that hon. Gentlemen opposite will not ask us to return to the previous system under which central bank co-operation was much less in evidence than it is today and therefore, as far as the world was concerned, promoted far greater instability.

Mr. Iain Macleod

Is the Chancellor aware that we recognise that this is a very difficult problem, and are not anxious to press him about it, but it may be that a figure is both accurate and misleading if it relates only to the first line reserves and takes no account of the borrowings? Will he, therefore, look again at this and see whether it is possible to give a better account of what really happened.

Mr. Callaghan

The fact that there has been recourse to central bank authorities is usually made known by the central banks concerned at a later date, and to that extent the information is available in retrospect, but if the House thinks that it would be better not to publish these monthly figures, I would be prepared to consider that.

Mr. Maxwell

Is my right hon. Friend aware that central bankers and traders all over the world admire him and the success which he has had in stabilising sterling? Will he slam the kind of Tory nonsense which is being played against sterling in this House, instead of dealing with them in such a gentlemanly manner?

Mr. Callaghan

I think it is well known throughout the world that the position with regard to the stability of our currency is extremely satisfactory, and I know that the right hon. Member for Enfield, West (Mr. Iain Macleod) was not making any aspersions to the contrary. I doubt if the other criticisms will be taken seriously.

Sir C. Osborne

I beg to give notice that, in view of the unsatisfactory nature of the reply, I shall seek to raise this matter on the Adjournment.