§ 3. Mr. Stonehouseasked the Chancellor of the Exchequer when he now expects to be able to fix a parity rate for sterling.
§ Mr. BarberWhen conditions permit.
§ Mr. StonehouseI appreciate that the floating of the pound has been a great advantage to sterling, particularly in the last few weeks, when an immense amount of hot money has been flowing into Germany, with great embarrassment to the Germany economy, but does not the Chancellor of the Exchequer have a clear commitment to fix a parity within the EEC? When does he intend to make clear that he will fulfil that commitment?
§ Mr. BarberWe have considered this matter on a number of occasions and I have made it absolutely clear where Her Majesty's Government stand.
§ Mr. PowellIs the Chancellor aware that I am quite happy to hear him reaffirm his adherence to fixed rates in principle, so long as he allows sterling to float in practice?
§ Mr. BarberIf my right hon. Friend is happy with one aspect of the Government's policy, I am very happy for him.
§ Mr. JayDoes a fixed but adjustable rate, which the Government apparently now favour, mean a rate of exchange which can be altered whenever we wish?
§ Mr. BarberI do not understand what the right hon. Gentleman is saying when he uses the expression "which the Gov- 660 ernment now favour". It is the policy that this Government throughout have favoured.
§ Mr. SheldonWill the right hon. Gentleman confirm that he intends not to fix the exchange rate until inflation is under control?
§ Mr. BarberI have said before that in considering this matter the totality of conditions affecting any exchange rate will obviously be taken into account.