HC Deb 19 October 1976 vol 917 cc398-9W
Mr. Gould

asked the Chancellor of the Exchequer how the present exchange value of the £ sterling compares with the estimate made of likely changes in the exchange values of the £ sterling at the time of the publication of the White Paper on the economic consequences of joining the EEC.

Mr. Robert Sheldon

The White Paper "The United Kingdom and the European Communities"—Cmnd. 4715, published in 1971—was not based on, and did not include, a specific forecast of probable sterling exchange rate movements following United Kingdom accession to the EEC. The White Paper made clear—paragraph 45—that the Government did not believe that the overall response of British industry to EEC membership could be quantified in terms of its effect on the balance of trade. Factors other than EEC membership have also influenced the sterling exchange rate since 1971.

Mr. Adley

asked the Chancellor of the Exchequer what was the value of the £ sterling against the US dollar when the £ sterling was first floated in 1971; on what date thereafter it rose to the highest post-inflation value; and what was its value on that date.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 18th October 1976; Vol. 917, c. 328.], gave the following reply:

At the close of trading in London 21st December 1971, the day that sterling was floated, the middle market rate was $2.5542=£1. On 9th March 1972 it reached its highest post-flotation value, touching $2.6427=£1 during the day.

Mr. Adley

asked the Chancellor of the Exchequer what was the percentage devaluation of the £ sterling against the US dollar at the time of the Stafford Cripps devaluation in the first post-war Labour Administration; what was the percentage devaluation of the £ sterling against the US dollar at the time of the Callaghan devaluation in the second post-war period of Labour administration; and what has been the percentage devaluation of the £ sterling against the US dollar since October 1974 to date.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 18th October, 1976; Vol. 917, c. 328.], gave the following reply:

The percentage devaluations measured as the changes in the dollar price of sterling were, 30 per cent., 14.3 per cent. and around 30 per cent, respectively.