§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is the increase in the effective exchange rate since 1 January; and how this compares with the increase in earnings in (a) the vehicle industry, (b) insurance, finance and banking and (c) the whole economy.
§ Mr. LawsonThe percentage changes between December 1979 and August 1980 the latest month for which earnings data is available, are as follows:
Effective exchange rate + 8.3 per cent (1)
Earnings in the vehicles industry + 2.8 per cent (2)
Earnings in insurance, finance and banking + 8.9 per cent (2)
Earnings in the whole economy +12.9 per cent (2)
(1) The percentage is calculated from monthly averages of closing rates.
(2) The percentages are based on indices which have not been seasonally adjusted. Seasonally adjusted series for individual sectors are not calculated.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what steps he is taking to ensure that wage restraint on the part of workers in the internationally tradeable goods industries will not be sabotaged by an increase in the exchange rate.
§ Mr. LawsonThe exchange rate is determined by market forces, not by the Government. In so far as a rising exchange rate is affecting the competitiveness of certain sectors of manufacturing industry, the problem will be eased by a responsible approach to pay bargaining in the current wage round.