§ Mrs. FyfeTo ask the Chancellor of the Exchequer what plans he has to discuss proposals for a Tobin tax, at the forthcoming IMF spring meetings in Washington. [114355]
§ Miss Melanie Johnson[holding answer 14 March 2000]: None. The Government believe the idea of a tax on currency speculation is, in principle, interesting, but has a number of practical drawbacks. In particular, it would be almost impossible to achieve a global coverage, and there would be huge scope for avoidance.
Over the past two years the Government have worked with our G7 partners on measures designed to strengthen the international financial system and establish better mechanisms for crisis prevention and resolution. Much of the groundwork was laid during the UK presidency of the G7 with my right hon. Friend the Chancellor in the chair.