§ Mr. Deakinsasked the Chancellor of the Exchequer for how long Great Britain can continue to float the £ sterling without interfering with the timetable for achievement of the first stage of EEC economic and monetary union.
§ Mr. NottThe sterling float does not interfere with the timetable for the first stage of economic and monetary union in the EEC.
§ Mr. Deakinsasked the Chancellor of the Exchequer what was the cost to the balance of payments in 1972 in terms of higher import prices and lower export prices, respectively, of the floating of the £ sterling.
§ Mr. NottThe sterling float increased some United Kingdom import prices in sterling terms. But other factors, such as world market conditions, also influenced import prices in the period. The float had little direct effect on United Kingdom export prices in sterling terms, but was reflected in about a 5 per cent. fall in United Kingdom export prices in dollar terms between the two halves of 1972. In time the trading account will benefit from the improvement in competitiveness provided by the float.
§ Mr. Deakinsasked the Chancellor of the Exchequer if the British contribution to the EEC Budget for 1973 will be made in units of account assessed on the basis of the last fixed parity of the £ sterling.
§ Mr. Patrick JenkinUnder the Community's regulations the United Kingdom's monthly instalments to the 1973 budget are payable in sterling and calculated by reference to our parity as declared to the IMF at the time the payments are made.
§ Mr. Deakinsasked the Chancellor of the Exchequer (1) what representations have been received from the EEC since 1st January 1973 about the Government's policy of floating the £ sterling:
(2) what discussions he has had with the French Government about fixing the sterling exchange rate.
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what assurances he has 68W given to the French Government about fixing the sterling exchange rate.
§ Mr. NottThe French Government have been told of our intention to return to the maintenance of agreed margins round a fixed parity for sterling as soon as conditions permit.