HC Deb 11 December 1978 vol 960 cc3-4
4. Nicholas Edwards

asked the Secretary of State for Wales if he will ask the Welsh Council to prepare a report on the impact of high interest rates on the economy of Wales.

Mr. John Morris

No, Sir. It is for the Council itself to decide what matters it wishes to consider.

Mr. Edwards

What does the Secretary of State think the consequences of these interest rates will be on Welsh business and on investment in Welsh business?

Mr. Morris

The hon. Gentleman must make up his mind whether he wishes to help or to sabotage the fight against inflation and the national recovery. I should have thought that, as a matter of confidence, it was in the interests of business that there should be restraint at present to ensure that we could make a further step forward.

Mr. Edwards

Will not these high interest rates halt investment, cause bankruptcies and increase unemployment in Wales?

Mr. Morris

I am sure that the hon. Gentleman must be aware of the reasons for this decision. There were factors—

Mr. Edwards

Excessive Government spending.

Mr. Morris

The hon. Gentleman must restrain himself. If he wants to hear the answer he must not speak from a sedentary position and in an uncivil fashion. He must be aware that there have been increases in interest rates throughout the world. That factor had to be borne in mind, and there was a need to restrain monetary expansion because we wanted to keep inflation down. The hon. Gentleman must make up his mind about whether he wants to sabotage the recovery of this country.