MONEY SUPPLY (Hansard, 17 July 1978)

§ 58. Mr. Gow
asked the Chancellor of the Duchy of Lancaster what representations he has received from those living in the Duchy about the rate of increase of the money supply.

§ Mr. Lever
None, Sir. I understand that the subject does not figure largely in general conversation in the Duchy.

§ Mr. Gow
Is the right hon. Gentleman aware that, after the Government's failure in the last financial year to reach their monetary targets, there is, in spite of the absence of correspondence from the Duchy, considerable anxiety there about whether the Government will be able to reach their monetary targets this year? Will he confirm that he is in regular communication with the Chancellor of the Exchequer to ensure that this year the monetary targets are met?

§ Mr. Lever
The hon. Gentleman's view that the Government are failing to reach their monetary targets is a shallow one and is based upon selecting for his appraisal, not with total impartiality, special periods. I can, however, reassure the hon. Gentleman that I am in continuous, close and amicable contact with the Chancellor of the Exchequer and that he and I are satisfied that the Government are doing very well with their economic and financial programme, in particular in relation to their monetary targets.

§ Mr. Dalyell
If the people in the Duchy are not talking about money supply, are they talking about the Scotland Bill?

§ Mr. David Price
In view of the Chancellor's reply to my hon. Friend the Member for Eastbourne (Mr. Gow) that monetary supply does not feature among the thoughts of the people of the Duchy of Lancaster, why does the right hon. Gentleman spend so much of his personal time in Government on this question?

§ Mr. Lever
The hon. Member must realise that not the whole of my duties are focused on the specific area historically regarded as the Duchy of Lancaster. I can tell him that different people attach different degrees of importance to the specific performance of the money supply. The different views range from ardent monetarism to a rather lax judgment of the general position. Whichever view one takes, all the evidence is that the money supply is in a healthy condition, that the country's inflation rate is declining and that prospects are good. Contrary to a suggestion from the Opposition a moment ago, the hon. Gentleman and his right hon. and hon. Friends are likely to have considerable further opportunities of asking Questions from the Opposition side of the House.