§ 22. Mr. Michael Lathamasked the Chancellor of the Exchequer whether he will now announce further economic measures.
§ Mr. HealeyI would refer the hon. Member to the statement I made to the House yesterday.
§ Mr. LathamBut that was yesterday. The Question relates to "further economic measures". In view of yesterday's completely inadequate statement, when will other measures be taken? In February?
§ Mr. HealeyThe hon. Gentleman knows that I shall make any statement I wish to make about further measures when appropriate. I am glad to say that this morning there has been a substantial increase in the value of equity shares and the sterling rate has stabilised.
§ Mr. LawrenceAre we to understand that the loan has now actually been secured? What will happen if the pound goes on falling, and will the Chancellor be unable to take advantage of the loan without a further deflationary Budget?
§ Mr. HealeyThe managing director of the IMF has already informed me that he intends to advise the Executive Board to accede to our application for the borrowing, and the major countries concerned have expressed their satisfaction with the measures we have taken. That includes in particular the United States, German and Japanese Administrations.
§ Mr. GowIf in the measures he announced yesterday the Chancellor fails to halt the slide in sterling and fails to reduce interest rates, will he confirm that in his Budget next April he will announce further public expenditure cuts?
§ Mr. HealeyThe hon. Gentleman should consult Conservative Front Benchers and persuade them to make up their minds what they want.
§ Mr. JayIs it not increasingly clear that the Opposition are anxious to do all they can to damage sterling?
§ Mr. HealeyYes, Sir, that has been made clear for quite a time. I think it is a matter of regret for the vast majority of British people that the Conservatives should behave so continuously in this way.