HC Deb 27 February 1968 vol 759 cc1219-22
30. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer if he will make a statement on the first regular inspection of the British economy by representatives of the International Monetary Fund since devaluation.

33. Mr. Sheldon

asked the Chancellor of the Exchequer what consultations he proposes with the International Monetary Fund; and if he will make a statement.

Mr. Roy Jenkins

In accordance with the terms of the Letter of Intent sent to the Fund by my predecessor last November, consultations with an I.M.F. Staff Mission have been taking place in London since last Wednesday. The talks are confidential. There have been full and helpful discussions on the economic position generally and the prospects.

Mr. Bruce-Gardyne

Is it not utterly outrageous that foreigners should be given detailed information, presumably in breach of the Official Secrets Act, which is denied to this House? Would the Chancellor at least tell us whether it is true that our international creditors believe that he is wildly over-optimistic in his forecasts of sustainable growth this year and the level of Government spending?

Mr. Jenkins

I have always believed the hon. Gentleman to be well informed and anxious to be constructive in his approach. I cannot believe that he thinks that the first part of his supplementary Question begins to have any validity. It means that no Government could ever engage in confidential discussions with another Government or with an international agency without publishing fully everything that they said. Clearly that is a position which has never begun to be accepted by any British Government.

Mr. Sheldon

Can my right hon. Friend tell us the total number of staff sent on the inspection, their length of stay, and their nationalities? Further, can he say if the amount of Treasury borrowing will be kept within the limits set by the International Monetary Fund?

Mr. Jenkins

Information about the Mission has been published. It is composed of four people. The nationalities are as follows: one British, one Australian, one American and one Dutch. As for the length of the Mission, I believe that it is drawing to an end at the present time. It is the normal length of any mission of this sort to any country. There is nothing exceptional about it. As for the last part of my hon. Friend's supplementary Question, I could not answer that without anticipating my Budget statement.

Mr. Biffen

In view of the fact that the Government's forward economic forecasts are now being revealed to the I.M.F., is it not imperative that that full information should equally be made available to this House before publication of the Budget?

Mr. Jenkins

No. If the hon. Gentleman was here earlier, he will know that I am seriously and sympathetically considering the basic point at issue here. It is not the case that Governments of either party have taken the view in the past that what is discussed with international organisations must be published automatically. Were I to take a different view, I should not be doing something which is necessarily wrong in itself, but I should be taking a new initiative which no Chancellor has taken in the past.

Mr. Mendelson

While accepting that my right hon. Friend must carry on confidential discussions, may I ask whether he will agree that he has also a duty to the House to comment on the reports emanating from Washington that the total level of public expenditure will be laid down by the Mission from the I.M.F.? Surely the House has the right to know whether or not his policy is so predetermined?

Mr. Jenkins

I can certainly reiterate what I told the House a few days after becoming Chancellor, which is, if anything, even more true now than it was then. The limitations upon me are set by the harsh facts of the situation and not undertakings given by my predecessors or anything brought to my notice by the I.M.F. or anyone else.

Mr. Iain Macleod

Accepting the need in present circumstances for such an inspection and accepting also that no Chancellor has made such information available before, will the right hon. Gentleman not agree that the fact that these forecasts have been given strengthens the case made from both sides of the House in earlier Questions for making similar information available to the House?

Mr. Jenkins

I am not sure that it does that. I am sure that forecasts have been made in the past without their being published. I say again that I will consider the basic request seriously.

Mr. Speaker

Mr. Bruce-Gardyne.

Mr. Bruce-Gardyne

Will the Chancellor now answer the second part of my supplementary Question?

Mr. Speaker

Order. Mr. Bruce-Gardyne. Next Question.

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