HC Deb 24 May 1989 vol 153 cc953-4 3.37 pm
Mr. A. J. Beith (Berwick-upon-Tweed)

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, the decision to raise interest rates to 14 per cent. and its implications for the economic policies of the Chancellor of the Exchequer. Today's interest rate rise is the tenth in a year. It is of urgent and serious concern to industry, small businesses, farmers and home buyers, because, although there is to be no immediate rise in the mortgage rate, how long will it be before that follows? We are paying the price for the Chancellor's mistakes last year in both monetary policy and in stoking up demand in his Budget measures.

You may recall, Mr. Speaker, that it was the Prime Minister's remarks in the House yesterday, expressing confidence in the Chancellor, that started the run on the pound which has given rise to the interest rate increase. You may feel, therefore that a period of silence would be welcome and that if the Prime Minister were to say any more it might add to the problems of confidence.

The Prime Minister is answering to a large conference of Conservative ladies on these matters. She ought to answer to the House of Commons on them as well. She ought to answer for the mess of the Government's economic policy and for the deep disunity on fundamental economic issues which is at the heart of the Government. The House is entitled to know whether the Government are prepared to take steps to deal with the fundamental problems of inflation and the balance of payments, or whether we are to expect further interest rate rises to bolster confidence every time there is a run on the pound. The country is entitled to know, and to know now.

Mr. Speaker

The hon. Gentleman asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely, the Bank of England's announcement of a percentage point rise in interest rates. I regret that the matter does not meet the requirements of the Standing Order, and I cannot, therefore, submit the application to the House.

Mr. Kaufman

On a point of order, Mr. Speaker. Without in any way questioning your ruling on the application under Standing Order No. 20 of my hon. Friend the Member for Walsall, North (Mr. Winnick), may I put it to you, in the presence of the Leader of the House, that since the developments in Anglo-Soviet relations, which concern a considerable number of hon. Members, have taken place since the debate on the spring Adjournment when we would have had the opportunity to raise them, and in view of the fact that we have only two more days left before the spring Adjournment, it would be greatly appreciated if the Foreign Secretary were to consider making a statement on this matter before we rise for the recess.

Mr. Speaker

I am sure that that has been heard by the Leader of the House.