§ 11. Mr. James Hamiltonasked the Chancellor of the Exchequer what was the trade weighted value of the pound sterling in October 1985 compared with October 1979.
§ Mr. LawsonThe average value of the sterling index in October 1985 was 80.4 compared with 88.0 in October 1979.
§ Mr. HamiltonIs that not a further indictment of the Government's incompetence and a denial of all the promises made in 1979? Does it not underline the categorical statement made by the right hon. Member for Old Bexley and Sidcup (Mr. Heath) that the country is now in a parlous state and that, if the trend continues, the pound will soon become confetti?
§ Mr. LawsonI am glad to note the hon. Gentleman's interest in these matters, but I have to tell him that the main reason for the change has been a sharp increase in the dollar against all currencies over that period which has not fully unwound, despite recent events. It would be kinder to my right hon. Friend the Member for Old Bexley and Sidcup (Mr. Heath) if I did not comment on the economic policies during his tenure of office. However, I can assure the hon. Gentleman that there is no chance under this Government of the pound becoming confetti money.
§ Mr. LathamShould we assume from the previous supplementary question that the Labour party wishes to push up the exchange rate and thereby bankrupt British exporters?
§ Mr. LawsonIt is difficult to discern the Opposition's policy on the exchange rate. Half the time they want a higher exchange rate, and the other half they want a lower exchange rate. Half the time they complain about the borrowing requirement being too high, and the other half they complain about it being too low. It would be instructive if, at some stage, the Opposition cleared their mind and said what their policy was.