§ 7. Mr. Ben Chapman (Wirral, South)If he will make a statement on the launch of the euro. [66520]
§ The Economic Secretary to the Treasury (Ms Patricia Hewitt)rose—[Interruption.]
§ Madam SpeakerOrder. Something has been said that I did not hear. [Interruption.] I did not hear whether any hon. Member used a term of abuse. [Interruption.] Order. Was it Mr. Gibb? [HON. MEMBERS: "Yes."] I believe that you insulted half the population, Mr. Gibb, by referring to "stupid" women. As I happen to be a woman, I would like an apology from you.
§ Mr. Nick Gibb (Bognor Regis and Littlehampton)If I inadvertently insulted an hon. Member, I withdraw the remark.
§ Ms HewittThe Government welcome the successful launch of the euro, which reflects the extensive planning 467 and preparation carried out by Governments, firms and institutions. In the City of London, conversion procedures were completed with no serious difficulties. Over the conversion weekend, some 30,000 London staff were involved in adapting systems and preparing for the successful start of euro trading. I am sure that the whole House will want to join me in praising their efforts. It is thanks to them that London is ready to be the leading international centre for euro trading.
§ Mr. ChapmanDoes my hon. Friend agree that British business very much welcomes the Government's approach to European monetary union, believing it right that business be helped to prepare for the euro? Does she agree with me, and, indeed, firms in my constituency, many of which are major multinationals, that to follow the Conservative party's policy of turning our backs on Europe would be not only disastrous for the United Kingdom economy but totally barmy?
§ Ms HewittI entirely agree with my hon. Friend. A successful euro will be good for Europe and good for Britain. I welcome the fact, as I know he does, that the information campaign that we ran last year doubled awareness among small and medium businesses of the need to prepare for the euro, and trebled the number of businesses that are making preparations. Given that half our trade is with the euro area, it is essential that every business, in his constituency and across the country, takes advantage of the opportunities that the euro creates.
§ Mr. Nicholas Soames (Mid-Sussex)The hon. Lady's extraordinarily smug reply about the City of London's preparations had absolutely nothing to do with the Government, and more to do with the City's effectiveness and primacy in world markets. Does she agree that, despite the fact that, naturally, more businesses are aware of the euro, the Government need, with greater vigour, to redouble their efforts in order to ensure that many more businesses receive practical help in understanding the nature of the euro's impact on them?
§ Ms HewittI am sorry that the hon. Gentleman apparently did not wish to join me in congratulating the City of London on its success in preparing for the euro, but I am pleased that he supports the efforts that we have been making to urge business to prepare, and I am glad that he supports the very practical steps that the Treasury and its departments are taking to ensure that business has the information that it needs—[Interruption.] The hon. Gentleman should listen to the reply. We shall continue to do everything necessary to ensure that British businesses prepare for the euro and are successful in trading with the euro currency area. I am just sorry that the hon. Gentleman is not interested in helping British business succeed.
§ Ms Sally Keeble (Northampton, North)Is my hon. Friend aware that many firms in Northamptonshire—not major multinationals, but quite small firms—already have euro bank accounts, and are working with the euro and effectively regard it as a working currency here? Is she aware of the KPMG report that showed that only 5 per cent. of city firms support the Conservatives' option on 468 entry to the euro, and that some 30 per cent. support the Government's option? Does she agree that the pretence—encouraged by the Conservative party—that the euro is preventable is profoundly damaging for the economy and this country's interests?
§ Ms HewittI am very aware of the great interest that my hon. Friend takes in this subject, and I am sure that businesses in her constituency are grateful for the help that she has given them. I entirely agree with her about the need to ensure that businesses are fully involved in making a success of the euro, and I agree that the Conservative party has effectively moved from being simply against the euro to being against Europe.
§ Dr. Vincent Cable (Twickenham)Are the Government aware that, yesterday, the Bank of America decided not to proceed with additional commitments to the City because of uncertainty over British entry to EMU? Following that decision and the earlier loss of the German bond market from the LIFFE—London international financial futures exchange—market to Frankfurt, what further evidence do the Government need that British exclusion from EMU is deeply damaging to the interests of the City of London?
§ Ms HewittYesterday, at a meeting—chaired by my right hon. Friend the Chancellor—of the Standing Committee on Preparations for the Euro, it was clear from what the Governor of the Bank of England and representatives of the City of London said that, as I said earlier, the City of London is taking every advantage of the opportunities created by the euro, and will continue to ensure that it meets competitive challenges and retains its position as the leading international centre for trading in euros.
§ Mr. Giles Radice (North Durham)While I congratulate the Government on the attitude that they are taking and on the way that they are trying to prepare industry for the opportunities of the euro, does my hon. Friend agree that it is in the national interest to join sooner rather than later?
§ Ms HewittThe Government's position on joining the euro was set out in the statement made to the House by my right hon. Friend the Chancellor in October 1997. The central test must be whether joining a successful single currency is good for the British economy, good for British business, good for jobs and good for the City. As my right hon. Friend said in that statement, there is no realistic prospect of being able to make that judgment before the next election. However, we are ensuring that preparations are in hand, so that we can take a decision early in the new Parliament.
If joining a successful single currency would be clearly and unambiguously good for this economy, of course, in principle, it must be right to join, but the economic tests must be met. Extraordinarily, the Conservative party takes the view that, even if joining the single currency were good for British business and good for jobs, it would still oppose joining.