HC Deb 19 June 1969 vol 785 cc692-4
Q2. Mr. Edward M. Taylor

asked the Prime Minister if he is satisfied with the present arrangements relating to Ministerial responsibility for the management of the economy, in the light of the current balance of payments; and if he will make a statement.

The Prime Minister

Yes, Sir.

Mr. Taylor

As much of the improvement in last month's figures came from the magnificent contribution made to invisible exports by financial institutions, would not it be appropriate for consideration to be given now to relieving them of some of the massive burdens of S.E.T.?

The Prime Minister

They seem to be doing very well, as a number of Ministers have said. My right hon. Friend the Financial Secretary gave some figures in his speech last Friday which I am sure will bring as much sense of encouragement to the Opposition, despite their silence, as it does to everybody else in the country.

Mr. Maudling

Is it the Prime Minister's case that the more industry contributes to the balance of payments the more it should be taxed for doing so?

The Prime Minister

No, Sir. Considering the forecast made by the right hon. Gentleman about the fact that invisible earnings would be fatally crippled by this tax, I am sure he will rejoice to see how wrong he was.

Mr. Cant

Accepting that policies are more important than the organisation of Ministries, and that according to the City Press Government policies are working out, and even though the latest opinion polls show that the right hon. Member for Wolverhampton, South-West (Mr. Powell) is two points ahead of the right hon. Member for Bexley (Mr. Heath), may I ask my right hon. Friend not to be panicked into adopting the same policies based on market forces such as gliding parities and crawling pegs?

The Prime Minister

No, Sir. My hon. Friend is too well-informed on these matters to base any question on a single month's figures, but I have not noticed any noise corresponding to what we have just heard on the other side of the House in appreciation of the fact that the deficit on current account—these are published figures—in the first quarter has been reduced to £20 million. As my right hon. Friend said, it is clear that the country is now paying its way. I am surprised—or perhaps not so surprised—that right hon. Gentlemen opposite, who are so quick to make capital out of a month's figures if they are the other way, have not expressed their appreciation.