HC Deb 24 October 1972 vol 843 cc980-1
21. Mr. Jay

asked the Chancellor of the Exchequer whether he will now give an undertaking not to restore a fixed rate of exchange for the £ sterling.

Mr. Barber

No, Sir.

Mr. Jay

As all recent experience shows that growth and full employment is not compatible with fixed exchange rates, why cannot the Chancellor stick firmly to his Budget Statement that he would alter the exchange rate whenever necessary?

Mr. Barber

My Budget Statement was wholly consistent with the Government's view that the international monetary system should be based on a regime of fixed but adjustable parities, and that is our policy.

Mr. Joel Barnett

Does the right hon. Gentleman feel committed to returning to a fixed parity by, say, the end of 1973, and if he is to achieve even that target, will he not concede that he desperately needs the agreement of the TUC to the package on Thursday? In those circumstances, will he tell his hon. Friends, who earlier this afternoon were boasting about tax reductions, that he proposes to reverse all those policies to have any hope of getting agreement with the TUC?

Mr. Barber

I have made it absolutely clear on innumerable occasions that we intend to return to a fixed parity as soon as possible. I hope that this will be before 1st January.