33. Mr. Lewisasked the Chancellor of the Exchequer why, in view of the Government's declared policy of improving the purchasing value of the £ sterling, the actual value has depreciated from 20s. in October, 1951 to 15s. 3d. in January, 1960; and what action he proposes to take to restore the £ sterling's purchasing value to its October, 1951 level of 20s.
§ Mr. BarberTo restore the purchasing power of the £ to its October, 1951, value would involve bringing about a large fall in prices. Short of a policy of 69W most drastic deflation or other violent measures there is no way open to the Government of achieving this, and the Government have no such policy in mind. Prices have been almost stable since early 1958, and it is my right hon. Friend's aim to maintain this trend so far as it is within his power; success, however, does not depend on Government action alone but also on the co-operation of other sections of the community.