§ Mr. Arthur Lewisasked the Chancellor of the Exchequer (1) which countries of the Commonwealth he approached prior to making an announcement of floating the £ sterling; what was their response; and if he will give similar details concerning the countries of the European Economic Community and the Ten;
(2) which countries of the Commonwealth he approached prior to making an announcement on exchange controls affecting sterling; what was their response; and if he will give similar details concerning the countries of the European Economic Community and the Ten.
§ Mr. NottAll these countries were informed of United Kingdom action as early as possible on 23rd June. In general the necessity for our measures has been appreciated.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what discussions he has had with the French Government and the countries of the European Economic Community on Great Britain floating the £ sterling; what was their response; and whether he will request France and the European Economic Community countries to float their respective currencies.
§ Mr. NottI would refer the hon. Member to my right hon. Friend's speech in the House on 29th June.—[Vol. 839. c. 1700–14.]
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent the Government now intend changing their economic and industrial policies in the light of the run on the £ sterling and the floating of the £ sterling.
§ Mr. NottOur economic and industrial policies are designed to achieve rapid growth of output and employment and to curb inflation. With a degree of slack remaining in the economy restrictive measures are unnecessary and inappropriate.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent he estimates the run on the £ sterling during 95W the month of June, and the steps taken by Her Majesty's Government to maintain the parity of sterling and their floating of the £ sterling, will affect the costs of Great Britain's entry into the Common Market.
§ Mr. NottI have nothing to add to the answer I gave to the hon. Member for Blaydon (Mr. Woof) yesterday.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent he estimates the floating of the £ sterling will in general increase the costs of all British imports, and food imports in particular; and to what extent he expects these increases will raise the cost of living.
§ Mr. NottIt is too early to say what the effect on the cost of living, food and other imports will be.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer why, in view of the floating of the £ sterling, he will not introduce a statutory wages, prices, dividends, profits, rents and incomes policy.
§ Mr. HigginsBecause it would not be appropriate.