HC Deb 22 November 1978 vol 958 cc641-3W
65. Mr. Giles Shaw

asked the Chancellor of the Exchequer what representations he has received from professional and trade associations concerning his Department's examination of the current proposals in the Community for a monetary co-operation system.

real exchange rate for the £ sterling in 1976; what was the increase or decrease in (a) real disposable incomes and (b) the volume of imports and exports of manufactures in 1976, 1977 and 1978 to date; and what are the corresponding figures for the French franc and Italian lira.

Mr. Robert Sheldon

I refer my hon. Friend to the Written Answer given him on 7th November. As stated there, there is no unique way of measuring appreciation or depreciation in real terms. Among the more widely used indicators are the IMF indices of relative normal unit labour costs, and the indices of relative wholesale prices. These indices adjust the changes in the effective exchange rate of a nation's currency for changes in that nation's unit labour costs or wholesale prices relative to a weighted average of the corresponding costs or wholesale prices in competitor countries.

The following table shows the figures requested.

Mr. Healey

I have received representations from a number of professional and trade associations, including the Confederation of British Industry and the Association of British Chambers of Commerce.

66. Mr. Blaker

asked the Chancellor of the Exchequer what advice he will be submitting to the forthcoming EEC European Council meeting concerning the proposed European monetary system.

Mr. Healey

The European Council is a meeting of Heads of Government. I shall of course be submitting advice to the Prime Minister.

67. Mr. Rost

asked the Chancellor of the Exchequer when he expects to reach a decision on British participation in the proposed European monetary system.

Mr. Healey

The Government will be taking a decision on participation in the proposed European monetary system shortly.

68. Mr. Budgen

asked the Chancellor of the Exchequer whether it is his policy that the United Kingdom should join the European monetary system.

Mr. Healey

The Government have yet to take their decision on membership of the European monetary system. They will do so shortly.