§ Mr. Sillarsasked the Chancellor of the Exchequer what is the present purchasing power of the £ sterling compared with its value in the month in which the Government introduced their present incomes policy.
§ Mr. Robert SheldonTaking the internal purchasing power of the £ as 100p in July 1975, its purchasing power in October 1976 would be 84½p.
§ Mr. Gouldasked the Chancellor of the Exchequer what was the average value of sterling in terms of dollars in June and November 1976; what is his estimate of the likely increase in (a) export prices and (b) unit labour costs over this period; and what effect these changes have had on the United Kingdom's competitiveness by comparison with the USA, Germany and Japan.
§ Mr. Robert SheldonThe average exchange rate for sterling against the US dollar was $1.7647 in June and $1.6367 in November. The other estimates requested are not yet available.
§ Mr. Gouldasked the Chancellor of the Exchequer what are the economic and statistical indications which he used when making his judgment that the £ sterling was undervalued.
§ Mr. Robert SheldonPrincipal indicators in this area are relative rates of inflation and the balance of payments position.