HC Deb 15 June 1971 vol 819 cc209-10
5. Mr. Kaufman

asked the Chancellor of the Exchequer what is the purchasing power of the £ sterling now, taking it as 100p on 18th June, 1970.

Mr. Higgins

Taking the value of the £ to be 100p in mid-June, 1970, its purchasing power in mid-April, 1971, the latest date for which information is available, is estimated to be 92p. This comparison is based on the movement in the General Index of Retail Prices.

Mr. Kaufman

Is the Minister aware that he gives the House this melancholy information on the day before the anniversary of the Prime Minister's dishonoured "at a stroke" pledge? Is he further aware that if the Conservative Government go on devaluing the currency at this rate, and if this Parliament lasts its full term of five years, the country will be saddled with "Ted Heath's ten-bob £"?

Mr. Higgins

That is a situation which we are absolutely determined to prevent. We are absolutely determined that we shall control inflation. The measures that we are taking are designed to do that, and we believe that they will achieve their objective.

Mr. Lipton

Would it not help to boost the economy and increase turnover if the Government were to instruct the Bank of England forthwith to sell £ notes for 92p?

Mr. Higgins

The important thing is that we should mobilise public opinion against inflationary wage claims, and I hope that we have the support of the the hon. Gentleman in that objective.

Mr. Redmond

Will my hon. Friend tell the House what was the fall in purchasing power of the £ during the first 12 months after the Socialist Government left office in 1951? Is history not repeating itself?

Mr. Higgins

I certainly do not feel that the record of inflation of the previous Government was one to be proud of.

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