HC Deb 22 February 1973 vol 851 cc658-9
2. Mr. Marten

asked the Chancellor of the Exchequer what change there has been in the proposals for an EEC monetary union.

The Chancellor of the Exchequer (Mr. Anthony Barber)

At the meeting on 14th February, the Council of EEC Finance Ministers decided to advance to 30th June the dates for reports on short-term monetary support and conditions for the progressive pooling of reserves.

Mr. Marten

As an interesting comment and as a curtain-raiser to this afternoon's debate, would my right hon. Friend not agree that it is now time to exorcise the illusion that it is in the interests of British people to fix irrevocably the parity of the pound? Surely, with mountains of international money slopping around the world markets, the only rate is the rate that the market will pay.

Mr. Barber

I have already made clear the Government's approach to this problem.

Mr. Healey

The Chancellor of the Exchequer will be well aware that by deciding to maintain the float—a decision of which most of us in the House strongly approve—he has completely broken his undertaking to maintain the "snake-in-the-tunnel" agreement. Does he maintain, after the events of the last nine months, that it is realistic to aim—as the Prime Ministers originally committed themselves—not only at single exchange rates immutably fixed within seven years from now but almost identical tax systems and a supranational agreement to fix all the major parameters of the national budgets of all the nine member countries?

Mr. Barber

I know that the right hon. Member for Leeds, East (Mr. Healey) stands by the views expressed by his right hon. Friend the Leader of the Opposition when he was Prime Minister——

Mr. Joel Barnett

Come off it.

Mr. Barber

There seems to be a difference of opinion on the Opposition Front Bench. All the Governments of the EEC agree with the need to press on with the work of integrating the economies of the Community, which will make a monetary union possible.