§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the effect to date of membership of the exchange rate mechanism on the profitability of United Kingdom manufacturing industry; what is his forecast for 1992; and what effect membership has had and is expected to have on output and employment in manufacturing industry.
§ Mr. Mellor[holding answer 12 February 1992]: Profitability, output and employment depend on a range of factors. ERM membership has reinforced anti-inflationary policy and brought greater exchange rate stability, thereby enabling businesses across the United Kingdom to plan and invest with greater certainty. Since joining the ERM, we have been able to reduce interest rates on eight occasions by a total of 4½ percentage points.