§ 3. Mr. Biffenasked the Chancellor of the Exchequer what proposals he has to fix the parity of sterling in the context of European economic and monetary union.
§ Mr. BiffenI am delighted by that answer, which, certainly by implication, suggests that there has been a Pauline conversion on the part of the Chancellor of the Duchy of Lancaster. If the right hon. Gentleman wishes to maximise the areas of agreement within this Chamber, will he take this opportunity to acknowledge the wisdom of my right hon. Friend the Member for Altrincham and Sale 1302 (Mr. Barber) in floating sterling, a wisdom which has been underlined by the fact that the French have recently followed his example?
§ Mr. HealeyThis is one of the many issues, as the hon. Gentleman will discover on Tuesday, on which I take exactly the same view in Government as I took in Opposition. The whole House will be aware that in 1972 the Government had no alternative but to drop the rate of sterling because of the state of the balance of payments at the time and the inflationary pressures under which the then Government were suffering. There was no opportunity of getting international agreement to a rate low enough to hold. There was, therefore, no alternative to floating.
§ Mr. Bruce-GardyneDoes the right hon. Gentleman recognise that there are some at least who have more sympathy with the advice that he is likely to get from the Chancellor of the Duchy than with the advice he has just received from my hon. Friend the Member for Oswestry (Mr. Biffen), particularly bearing in mind the need for the external discipline on the conduct of the present Government which would ensue from re-pegging the pound?
§ Mr. HealeyI am delighted to observe that the same differences as existed in the Conservative Party when in Government survive on the back benches now that it is in opposition.