§ 2. Mr. Sheermanasked the Chancellor of the Exchequer if, having particular regard to the position of industry in West Yorkshire, he will immediately seek further to reduce interest rates.
§ The Chief Secretary to the Treasury (Mr. John Biffen)I am fully aware of the problems which high interest rates have caused for industry in West Yorkshire and elsewhere. The minimum lending rate was cut by two points on 24 November. Further changes will take place as and when economic circumstances indicate.
§ Mr. SheermanIs the Chief Secretary aware that industrialists in West Yorkshire and elsewhere are in such grave difficulties that the 2 per cent. cut is almost an insult to their intelligence? Is he aware that they have for a long time struggled against the strength of the pound in the exporting centre of Britain and that they cannot manage for much longer unless they have help from the Government?
§ Mr. BiffenI do not believe that the 2 per cent. cut is an insult to the intelligence of business men in West Yorkshire or elsewhere. Any future reductions in the minimum lending rate will be widely welcomed in the business community.
§ Mr. Richard WainwrightDoes the Chief Secretary realise that in view of the Government's known doctrinal approach business men do not know whether the next move in MLR will be up or down? In order to give them a basis for their business planning, will he issue a revised version of the Government's financial strategy?
§ Mr. BiffenNo. I think that the business men of West Yorkshire are a damned sight more shrewd than the hon. Gentleman suggests.
§ Mr. SpeakerOrder. I do not like that sort of language here.