HC Deb 28 November 1972 vol 847 cc214-5
3. Mr. Deakins

asked the Chancellor of the Exchequer if he will publish a White Paper setting out the full implications of Common Market economic and monetary union.

Mr. Barber

Such a document would be premature at the present stage.

Mr. Deakins

Why are the Government seeking to hide from Parliament and the British people the full implication of even the first stage of economic and monetary union, which must involve some loss of control of our Budget, economic management and taxation? Furthermore, will the Chancellor assure the House that he will give away no details of his 1973 Budget to his Common Market partners before that Budget has been submitted to this Parliament?

Mr. Barber

On the second point, it is very unlikely that I shall be asked—I certainly have not been asked so far—for any of the detailed proposals I may consider making in my Budget. On the hon. Gentleman's first point, there is no question of hiding anything. The Government have made their position quite clear about this on many occasions. We support the intention recorded in the sumit communiqu" to transform the complex of relations between the members of the EEC in the enlarged Community into an economic and monetary union.

Mr. Marten rose

—

Mr. Speaker

Mr. Bruce-Gardyne—I am sorry, Mr. Marten.

Mr. Marten

Thank you, Mr. Speaker.

Mr. Speaker

I am sorry, it was a geographical slip.

Mr. Marten

Honoured and flattered as I am, may I ask the Chancellor whether he has seen the statement issued last Thursday by the CBI, which has come out against fixed exchange rates and which said that unless there is greater flexibility in the exchange rates this will lead to deflationary policies in this country and to restrictions on capital movements, which is just what many people opposed to this for a long time have been saying? Why has my right hon. Friend just woken up to this?

Mr. Barber

Perhaps my hon. Friend is a little out of touch. I have been having discussions on these matters with the CBI on a number of occasions and I know the CBI's views. The Government have made absolutely clear where they stand on fixed parities and on temporary floating.

Mr. Healey

Can the Chancellor enlighten us a little? We are not clear whether the Chancellor's discussions with the CBI led to the CBI converting him or led to his converting the CBI. As, however, the right hon. Gentleman has recommitted the Government to the objective of total monetary union, may I ask whether he shares the CBI view that this is impossible without total economic union and a common fiscal policy? Does he not agree with the overwhelming majority of opinion in the country that to aim for such things at this stage would be grossly prejudicial to Britain's interest?

Mr. Barber

I agree with the overwhelming majority of finance ministers throughout the world. What we want is a system of fixed but flexible parities.

Mr. Powell

As the Government have committed the country without prior parliamentary debate to economic and monetary union by 1980, would it not at least be reasonable to submit such a White Paper as the hon. Member for Waltham-stow, West (Mr. Deakins) requests, especially as no such steps were contemplated in the White Paper presented last year?

Mr. Barber

No, Sir, I do not think so, for the reasons I have given.