§ Mr. Sillarsasked the Chancellor of the Exchequer what is his estimate of the savings on a year's imports, were the value of the £ sterling to equal $1.74.
§ Mr. Robert SheldonAny estimates are subject to a wide margin of error, but if the value of the £ sterling were $1.74, compared with $1.72, and if the value of sterling against all other currencies were also 1.2 per cent higher, the value of imports of goods might be 0.6 per cent. lower, equivalent to £200 million of the 1976 import bill This estimate allows for (i) a rise of 0.4 per cent. in the volume of imports because of worse competitiveness and (ii) no change in the level of activity or wages Because the impact of an exchange rate change is quicker on import prices than volumes, the short-term effect on the value of imports would be larger than 0.6 per cent.
§ Mr. MacGregorasked the Chancellor of the Exchequer how much an asset purchased for £100 in April 1965 would have to be worth at the present date to maintain its real value.
§ Mr Denzil DaviesIn May 1977—the latest date for which information is available—the sum of £310 had internal purchasing power approximately equivalent to that of £100 in April 1965.