§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that the internal purchasing value of the £ sterling fell by 5d. between mid-June and mid-October; what was the reason for this decline; and what action the Government have taken, or intend taking, to restore the £ sterling to its early June purchasing value.
§ Mr. HigginsThe answer to the first part of the question is, "Yes". The main reason was the very high rate of wage settlements in the months up to June, which led to a continuing rise in industrial costs. The Government are working for a progressive reduction in the scale of settlements, against a background of firm monetary and fiscal policies.