HC Deb 24 October 1972 vol 843 c970
7. Mr. Dalyell

asked the Chancellor of the Exchequer if he will make a statement on the latest balance of payments situation.

Mr. Higgins

The latest period for which we have full balance of payments figures is the first six months of this year, when there was a current account surplus of some £135 million. In the third quarter the visible trade figures were heavily distorted by the effects of the dock strike. We continue to earn a substantial surplus on invisible account.

Mr. Dalyell

Would the Financial Secretary care to comment on the somewhat cryptic statement in the summit communiqué that perhaps national currencies would no longer be used as instruments of economic reserve?

Mr. Higgins

I do not think that that arises from this Question.

Mr. Jay

Have Treasury Ministers noticed that the prospect of joining the EEC has led so far this year to a further fall in industrial investment and persistent weakness in that area?

Mr. Higgins

I do not think that that arises on this Question.

Dr. Gilbert

Is it still the Government's view that the underlying balance of payments situation justifies a rate of 2.60 dollars to the £, as was apparently the Chancellor's view last summer when he said that we were forced off that parity only by speculative movements?

Mr. Higgins

My right hon. Friend has made our position on the floating of the £ very clear and I do not wish to add to what he said.