§ Mr. Gouldasked the Prime Minister whether the Government will encourage expansion by measures designed to reduce the real exchange rate.
§ The Prime MinisterThe Government's policies are designed to promote sustainable economic expansion, by pursuing sound financial policies and extending and improving the operation of market forces in the economy. This provides the best framework for industry, including those who work in it, to increase their competitiveness, both by cutting unit costs and by improving the important non-price aspects of performance.
§ Mr. Gouldasked the Prime Minister whether the Government will encourage the pound sterling to fall against the European monetary system currencies in line with any fall in the US dollar against those currencies.
§ The Prime MinisterThe Government continue to have no target for the exchange rate, movements in which reflect market forces.