§ Q6. Sir C. Osborneasked the Prime Minister if he will make a statement on the results of his policy announced on 20th July, 1966; and what new measures he proposes to introduce to achieve his aims of a strong sterling and favourable balance of payments.
§ Mr. M. StewartI have been asked to reply.
I would ask the hon. Gentleman to await the Statement which my right hon. Friend the Chancellor of the Exchequer will be making on 15th April.
§ Sir C. OsborneAre the Foreign Secretary and the Chancellor aware that the rate for sterling in July, 1966 was 2.7987 and that today it is 2.3936—[Hon. Members: "Reading."] Whether you like the figures or not, you are going to have them—
§ Mr. SpeakerOrder. The hon. Gentleman must not threaten me.
§ Sir C. OsborneThe rate today is—[Interruption.]—15 per cent. worse than it was in July, 1966—[HON. MEMBERS: "Reading."]—and, as regards the balance of payments, in 1966, there was a favourable—[HON. MEMBERS: "Reading."]—May I have your assistance, Mr. Speaker?
§ Mr. SpeakerOrder. We are losing valuable Question time.
§ Sir C. OsborneIs the right hon. Gentleman aware that in 1966 there was a favourable balance of payments of £15 million, that in 1967 it had turned—[HON. MEMBERS: "Reading."]
§ Mr. SpeakerOrder. This is unbearable—
§ Mr. SpeakerOrder. It is my job to protect hon. Members. Sir Cyril Osborne.
§ Sir C. OsborneIn 1966, there was a favourable balance of £15 which the next year was turned—[Hon. Members:"Reading."]—into a deficit of £404 million and that last year—
§ Mr. SpeakerOrder. Questions must be reasonably brief.
§ Sir C. Osborne—and that last year the deficit was £412 million? Is this not a disgraceful result of a promise made by a bankrupt Prime Minister?
§ Mr. StewartThe figures to which the hon. Gentleman refers are, of course, public knowledge. That is why some of my hon. Friends were a little impatient with his taking up time by repeating them. My right hon. Friend the Chancellor has never disguised from the country the seriousness of its problems, which those figures illustrate. That is why he has taken firm measures to put the economy right.
§ Mr. MaudlingIf these figures are common knowledge, why are the Government so cross with the Postmaster-General for telling the truth?
§ Mr. StewartI thought that the right hon. Gentleman would try to get that one in. I have just said that my right hon. Friend the Chancellor has never disguised from the country the seriousness of the country's economic position.
§ Mr. CantWe all enjoy the new rôle of the hon. Member for Louth (Sir C. Osborne) as a sort of Rip van Winkle, 1966 vintage, but would my right hon. Friend draw the Chancellor's attention to the difficulties being created for this country by the United States of America and to the fact that, while we have no objection to their ransacking the Eurodollar market to buy the best in European industry, we have some objection to their doing so to finance American capital investment at home, with its implications for rates of interest? Would he do something about that?
§ Mr. StewartMy right hon. Friend the Chancellor, who is present, will have noted what my hon. Friend said. Although it is entirely right to notice the figures quoted by my hon. Friend or indeed any other facts about the economy, nor should we deny that we have, in recent months, noticed a decided improvement.