HC Deb 13 May 1969 vol 783 cc1209-11
23. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is his latest forecast of the annual rate of balance of payments surplus or deficit likely to be achieved by the end of the current calendar year.

25. Mr. Ridley

asked the Chancellor of the Exchequer what is his estimate of the out-turn of the balance of payments for 1969.

Mr Harold Lever

I have nothing to add to the forecasts published in "The Financial Statement and Budget Report, 1969–70".

Mr. Bruce-Gardyne

In view of today's appalling trade figures, is it not now apparent that we are heading for a massive balance of payments deficit this year? In view of this, would it not be more sensible for the Government to publish the letter of intent as rapidly as possible and assure the world that the I.M.F. is now taking responsibility for the management of our economy, instead of telling us that the Chancellor is to pursue his own strategy, which is rubbish?

Mr. Lever

I am not in the habit of being untruthful to the House. I again deny what it suits the hon. Gentleman to publicise—the suggestion that the I.M.F. is about to take over our strategy and, presumably, impose some dreadful squeeze on the British economy. The hon. Gentleman is continuing with his merely empty demagogy, with the result that the rest of his supplementary quesis not appropriate.

Mr. Ridley

Will the Financial Secretary confirm that to get the balance of payments right is the main objective of his right hon. Friend the Chancellor of the Exchequer? Since it is clearly not succeeding, what new policies will the Government lay before the country which might have some chance of succeeding?

Mr. Lever

The prime purpose of the Government's economic strategy is, of course, to get the balance of payments right. International financial co-operation does not restrict the choice of the Government, but enlarges it to enable them to take the longer and more constructive view in these affairs. I do not accept that on one month's—

Mr. Ridley

Three months'.

Mr. Lever

—or three months' perhaps disappointing trade figures, not up to what we should like to have seen, any of the exaggerated conclusions drawn by the hon. Gentleman should be drawn by the House.

Mr. Higgins

Is it not a fact that the Budget was quite irrelevant to our balance of payments problems? Will the Financial Secretary publish the figures for his forecast both before and after the Budget changes so that we can ascertain what view the Government have about the matter?

Mr. Lever

The Budget was directly relevant to our balance of payments problems. There was continuation of the Government's strategy, as outlined by the Chancellor of the Exchequer. I will consider the request by the hon. Gentleman in the latter part of his question.

Mr. Heffer

Is it not clear that the time has now come for the Government to change their economic strategy? Is it not clear that the time has come for the first time seriously to consider the idea of import quotas and controls?

Mr. Lever

I do not believe that my hon. Friend should be panicked by comment opposite into suggesting that our situation needs any such devices.