HC Deb 31 October 1996 vol 284 cc779-80
9. Mr. Sweeney

To ask the Chancellor of the Exchequer if he will make a statement on the International Monetary Fund's recent report on the United Kingdom economy. [322]

Mr. Waldegrave

The IMF recently described the UK's economic performance as "enviable" and said that "the strong overall performance is a product of sound economic policies."

Mr. Sweeney

Does my right hon. Friend agree that that extremely complimentary report contrasts starkly with the performance of the last Labour Government, which was so bad that the International Monetary Fund had to come in and run our economy? Does he further agree that Labour's plans to introduce the provisions of the social chapter on a minimum income are likely to destroy jobs and damage our economy?

Mr. Waldegrave

The contrast between the situation in, I believe, 1976 when Lord Healey, the then Chancellor, could not attend the IMF meeting because of the financial crisis in Britain, followed by the arrival of the IMF to run the British economy, and the fact that the IMF this year congratulated my right hon. and learned Friend, could hardly be more marked. That contrast provides a summary of the difference between Labour and Conservative economic government.

Mr. Winnick

If it is all so rosy in the garden, will the Chief Secretary explain why there is such an overwhelming wish in the country to get rid of the Government, and why The Times today publishes an opinion poll showing a 28 per cent. Labour lead? Does that not demonstrate that what the British people want, first and foremost, is a general election now?

Mr. Waldegrave

I remember hearing remarks like that from the hon. Gentleman many times over the past 17 years. I shall hear them from the Opposition benches over the coming years too.

Mr. Duncan Smith

In fairness to the Opposition, when my right hon. Friend and the Chancellor study the IMF report, will they ask themselves whether, over the entire period when the IMF has reported on this country, the shadow Chancellor has ever agreed with us, or got it right, on any single major decision affecting taxation, interest rates or anything else?

Mr. Waldegrave

One certainly wants to be fair in these matters, and the answer is that my hon. Friend is perfectly right. In the past, the Opposition have always got interest rate judgments wrong. They now have a policy which precision-bombs all the strengths of our economy—the social chapter, the minimum wage and so on. They want to destroy all the labour market liberalisation which is giving us more and better jobs than our European competitors.