§ 1. Mr. CohenTo ask the Deputy Prime Minister what study he has made of the impact on United Kingdom competitiveness of entry into a single currency; and if he will make a statement. [1296]
§ The Deputy Prime Minister (Mr. Michael Heseltine)Such a study can be made only when the circumstances under which economic and monetary union will go ahead become clearer.
§ Mr. CohenWill the Deputy Prime Minister clearly state what terms for entry into a single currency he considers unacceptable for United Kingdom competitiveness? I oppose the huge public spending cuts that convergence would cause. Does the right hon. Gentleman agree with me? Is not the Government's lack of clarity on the issue intended to cover up the huge chasms in the Conservative party and is not the Deputy Prime Minister really a closet supporter of the single currency, whatever the terms?
§ The Deputy Prime MinisterThe hon. Gentleman must have missed out on the attempts by the shadow 2 Chancellor of the Exchequer to paper over the huge chasm in the Labour party over the social chapter, as he is now doing in Harrogate. The standards about which the hon. Gentleman seeks an answer are simple: we shall judge economic and monetary union against the best interests of Britain.
§ Mr. GillWill my right hon. Friend take time to explain to the Confederation of British Industry what happened to unemployment in Britain when we were on the gold standard between 1925 and 1931 and during our membership of the exchange rate mechanism in 1992? On both occasions, unemployment doubled, and that is politically unacceptable.
§ The Deputy Prime MinisterI am well aware of my hon. Friend's views and he will doubtless convey them to British industry.