§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether the Government have considered how the United Kingdom deficit on current account will be eliminated if sterling is locked into the ERM of the EMS in the foreseeable future; and if he will publish in theOfficial Report a table showing the deficit with the EEC and with the rest of the world in 1970, 1973, 1979, 1988 and the forecast for 1989.
§ Mr. Norman LamontThe current account deficit will narrow as domestic demand continues to slow. The timing of United Kingdom entry into the ERM is unlikely to make much difference to this. For the balance on current account with the EC I refer the hon. Member to table 10.1 of the CSO's Pink Book. Figures for earlier years are available on the CSO databank. A forecast for the current account deficit in 1989 is published in the Autumn Statement.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will make it his policy to link the £ sterling to the deutschemark within the exchange rate mechanism of the European monetary system only on conditions which ensure that British goods became and remain competitive.
§ Mr. LilleyI refer the hon. Gentleman to my right hon. Friend the Chancellor's description in the House on 2 November at column 490 of the factors that will determine when the United Kingdom will join the exchange rate mechanism.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what consideration the Government, in considering the effect of tying sterling to the deutschemark within the ERM of the EMS, have given to the effect of that on the French economy.
§ Mr. LilleyI refer the hon. Gentleman to my right hon. Friend the Chancellor's description in the House on 2 321W November at column 490 of the factors that will determine when the United Kingdom will join the exchange rate mechanism.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the Government's policy on the eight conditions on which the then Government insisted in the Green Paper on the EMS Cmnd. 7405; how many have since been met; and whether the Government will continue to insist on full acceptance of the eight conditions as a condition for tying sterling to the deutschemark within the ERM of the EMS.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether the Government will publish a Green Paper on the European monetary system to examine to what extent, the reservations expressed in Cmnd. 7405 have been met.
§ Mr. LilleyThe Government have already set out clearly the factors that will determine when the United Kingdom will join the exchange rate mechanism of the European monetary system.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will make it his policy to ensure before agreeing to enter the ERM of the EMS that the obligations on creditor and debtor countries are symmetrical as regards wages, prices, interest rates and the money supply.