§ Lord Diamondasked Her Majesty's Government:
Whether they will define the meaning of the words "petro-currency" as used by them as attributable to sterling, and to state how long they expect sterling to remain a "petro-currency".
The Chancellor of the Duchy of Lancaster and Minister for the Arts (The Earl of Gowrie)The designation of sterling as a "petro-currency" is more a perception of the market than of the Government. Sterling's relative value is of course influenced by oil market developments. But this has, on occasions, been exaggerated. Even though United Kingdom oil production may be close to its maximum levels, together with gas production it comprises only about 5 per cent. of GNP. It is impossible to predict with any confidence how long this market perception will persist.