HC Deb 11 November 1976 vol 919 cc636-7
Mr. Dykes

asked the Chancellor of the Exchequer when he next expects to meet the United States Secretary of the Treasury to discuss economic and financial matters of mutual interest.

Mr. Hooson

asked the Chancellor of the Exchequer if he has any plans to visit Washington DC to discuss economic and financial matters.

The Chancellor of the Exchequer (Mr. Denis Healey)

I have no immediate plans to do so, but I am of course in frequent contact with American colleagues and I shall hope to have an early opportunity to make contact with members of the new Administration.

Mr. Dykes

Is it true that the outgoing United States Secretary of the Treasury believes that this country will need to borrow more than the $3.9 billion proposed IMF facility, particularly if the problem of the sterling balance is to be exorcised once and for all, and that Germany will end up by providing the bulk of a loan which could eventually amount to approximately $10 billion?

Mr. Healey

I have no information whatever to justify that statement, and I should be interested to receive any evidence that the hon. Gentleman has. He will know that the United States Secreretary of the Treasury has expressed great confidence in the management of the British economy and has never criticised it, as sometimes the Opposition have done.

Mr. Atkinson

Is my right hon. Friend aware that in the United States when there is a change of President there is also a change of financial advisers to the President? The United States contend that if there are Presidents of differing political views, with different economic opinions, it is not possible for the same set of advisers to advise both types of President. How does the Chancellor reconcile that with the situation in this country, where there are people such as Mr. Alan Lord, and others, who are now advising my right hon. Friend, and yet were attempting to advise the previous Government who, presumably, were pursuing quite different policies?

Mr. Healey

The function of civil servants in the British constitution is to advise Ministers how to carry out the policies of those Ministers. In my experience, and I am sure, in that of the Opposition Front Bench, they give that advice at all times in the most objective way possible.

My hon. Friend referred to remarks, which were gravely misrepresented in the headlines of The Times today, by Mr. Alan Lord. Mr. Alan Lord, in the lecture to which I believe my hon. Friend was referring, made a powerful argument in favour of the industrial policy that is supported by the Government, the TUC and the CBI He pointed out, as I have done on many occasions, that if we are to achieve the increase in productivity that is our common aim we must create new jobs to replace the jobs that will be lost. We must get more capital investment and better use of existing capital.

Mr. Crawford

Will the Chancellor tell the Secretary of the United States Treasury that with Scottish self-government the £ Scot will rise to at least the equivalent of £1.20 English? Does the Chancellor consider that to be a conservative or a liberal estimate?

Mr. Healey

I confine my discussions with the United States Secretary of the Treasury mainly to facts, but if I ever have time to discuss fantasies I may take account of what the hon. Gentleman has said.