HC Deb 17 October 1989 vol 158 cc22-3 3.32 pm
Mr. Gordon Brown (Dunfermline, East)

I beg to ask leave to move the Adjournment of the House under Standing Order No. 20 for the purpose of considering a matter that is specific, important and requires urgent consideration, namely, The rise in interest rates to 15 per cent. and the failures of Government economic policy. The matter is specific because, after 15 months of the highest interest rates, the worst inflation, and the biggest trade deficits with our major competitors, and after 15 months of sacrifices from millions of home owners, inflation is still rising, the trade gap is still widening and interest rates are still moving up.

This has all taken place in the real economy before and irrespective of any impact from this week's stock exchange fluctuations. On Friday, inflation rose to 7.6 per cent.—the highest in Europe but for Greece. A week before, interest rates went up to 15 per cent.—the worst in Europe. Next Tuesday's trade figures will confirm that the balance of payments deficit is not only the worst in Europe, but the worst in our history.

For a year, the Chancellor has promised that inflation is a temporary blip on the road to zero inflation. It is not. For more than a year, he has sought to convince us that the trade deficit would correct itself. It has not. For a year, his advice to home owners has been to cut back on something else, and thousands now cannot. For a year, he has compounded, rather than corrected, the errors of his policy by his exclusive reliance on high interest rates.

Industry is paying an extra £1.5 billion for its borrowing costs, small businesses by the thousands face difficulties and home owners by the millions are paying an average of £80 a month more for their mortgages—all the result of the mistaken policies of a discredited Chancellor in a failed Government.

The matter is important, because in addition to the damage to businesses and home owners, the Chancellor's greatest and most central failure is his failure to create the long-term stable environment for industry that a modern economy needs. With imports even this year rising twice as fast as exports, with our deficits concentrated in the new high-technology industries, with no new policy for training or research or investment in the regions that could bring the deficit down, the Government persist in claiming that the trade deficit, even approaching £20 billion, is a matter of no consequence, to the extent that the Chancellor did not mention it in his Conservative conference speech and the Secretary of State for Trade and Industry was not even allowed a conference speech to mention it.

The matter requires urgent consideration because a change of national economic policy is essential in the interests of the nation. Before the Chancellor's speech to the Mansion House, before he completes his Autumn Statement and before he makes further mistakes by his mismanagement, he should be forced to defend his policy to a more critical audience than the Conservative party conference in Blackpool——

Mr. Speaker

Order. The hon. Member for Dunfermline, East (Mr. Brown) 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 rise in interest rates to 15 per cent. and the failure of the Government's policies. As the House knows, under Standing Order No. 20 I have to take into account the requirements of the order and announce my decision without giving reasons to the House. I listened with care to what the hon. Gentleman said, but, as he knows, my sole duty in considering an application under Standing Order No. 20 is to decide whether it should be given priority over the business already set down for this evening or for tomorrow. I regret that the matter that he has raised does not meet the requirements of the Standing Order, and I therefore cannot submit his application to the House.