§ Lord EzraMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
The Question was as follows:
To ask Her Majesty's Government whether in view of the recent statement by M. Delors, President of the European Commission, that the European monetary system should be reinforced, they will reconsider their policy towards the exchange rate mechanism.
§ The Parliamentary Under-Secretary of State, Department of Transport (Lord Brabazon of Tara)My Lords, we keep the question under continual review.
§ Lord EzraMy Lords, I thank the noble Lord for that expected Answer. But is he aware that the reason for M. Delors making the statement was that he considered this to be an essential ingredient in creating an effective internal market? In view of the Government's commitment to the creation of an effective internal market, do they now consider that they should give more thought to supporting the EMS?
§ Lord Brabazon of TaraMy Lords, the Government have always said that there are arguments both in favour of and against joining the exchange rate mechanism. We shall join only when we are satisfied that the balance clearly favours doing so.
§ Baroness SeearMy Lords, will the noble Lord tell us what criteria are being applied? We have had this answer to the question at least 10 times and we have never been told how the Government are making their judgment. Will he please enlighten the House?
§ Lord Brabazon of TaraMy Lords, I am afraid the noble Baroness will be disappointed if she expects something new from me this afternoon. It is not possible to specify precisely what the factors are. There are a number of them, and they and their interaction need to be taken into account. It would be wrong to commit the Government. Circumstances change and I do not think that it would help conditions in the exchange market for me to be too specific.
§ Lord Boyd-CarpenterMy Lords, is my noble friend aware that the pound is doing pretty well under the present system?
§ Lord Brabazon of TaraMy Lords, I suspect that that depends on which way one wishes to see the pound going.
Lord Bruce of DoningtonMy Lords, is the noble Lord aware that some at any rate of the statements made by M. Delors ought to be the subject of consideration with the normal degree of prudence? Will he give the House an assurance that, although the matter will be kept under review, we shall not join this institution until it is in the best interests of the United Kingdom to do so?
§ Lord Brabazon of TaraMy Lords, I answered that question when I said that we should join only when we were satisfied that the balance clearly favoured our doing so. As regards the points made by M. Delors, we shall of course participate fully in those discussions.
§ Lord DiamondMy Lords, inasmuch as all that the Minister is saying is that the Government are behind joining in principle but are not clear as to the timing, would it not be sensible for them to make up their minds and end this nonsense which compels the Minister continually to give rather silly replies to the House?
§ Lord Brabazon of TaraMy Lords, I am sorry if the noble Lord thinks that my replies are silly. If he expects me to make some great policy statement this afternoon, I am afraid he is in for a disappointment.
§ Lord EzraMy Lords, does the noble Lord recall that the Chancellor of the Exchequer was recently reported as having said that he thought that sterling ought to have a specific relationship to the deutsch mark? If that is so, is not the best way to do that to join the system which precisely provides for that eventuality?
§ Lord Brabazon of TaraMy Lords, my right honourable friend the Chancellor said nothing new. The policy is unchanged. The question of the United Kingdom's participation in the exchange rate mechanism is kept under review and, as I said, there are arguments both in favour and against joining it.