HC Deb 21 March 1974 vol 870 cc1303-4
5. Mr. Skinner

asked the Chancellor of the Exchequer what, in percentage terms, is the value of the £ sterling at the latest official date, compared with 18th June 1970.

The Paymaster-General (Mr. Edmund Dell)

Taking the internal purchasing power of the £ sterling as loop in June 1970, its value in January 1974, the latest date available, is estimated to be 73p, on the basis of the change in the General Index of Retail Prices.

Mr. Skinner

Is my right hon. Friend aware that when I asked this Question from the other side of the House the answer used to be about world prices, warm currents off Peru being diverted, and silly little things like that? Will my right hon. Friend agree with me that the real reason was the 1973 Budget deficit of £4,000 million, commodity price speculation, property speculation and factors over which the previous Government had a great deal of control? As he is now in a position to do something about some of these things, will my right hon. Friend advise his right hon. Friend accordingly?

Mr. Dell

There are many factors behind the depreciation of the pound. One of them was the devaluation of sterling under the previous Government. It is true that world prices have had an effect on inflation in this country. It is important to ensure that the burden of any increase in world prices is fairly shared within the community.

Mr. Evelyn King

Will the hon. Gentleman accept a prophecy—that if the Government remain in office for a further three months, which is in doubt, and if election pledges are fulfilled, which also is in doubt, the record of inflation over the next three months is likely to exceed any in recorded British history?

Mr. Dell

If the reason for doubt about the continuance in office of the Government is the antics of the Opposition a few days ago, I have no doubt that we shall continue in office.

Sir Derek Walker-Smith

Does the right hon. Gentleman have handy the corresponding figures for the period between October 1964 and June 1970?

Mr. Dell

I do not have them handy but I assure the right hon and learned Gentleman that they were nothing like these figures.