HC Deb 12 July 1994 vol 246 cc565-6W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer (1) what factors Her Majesty's Government took into account before entry into the exchange rate mechanism; what estimates of the effect on United Kingdom exports and imports were made at the time; and what was the outturn up to September 1992;

(2) what has been the change in the nominal rate for the pound sterling against the (a) deutschmark and (b) ecu since December 1989; and what has been the effect on exports, imports, output and employment in the principal import-competing and export industries, distinguishing between trade with EC countries and trade with the rest of the world;

(3) what was the change in the real and nominal exchange rates of the pound against (a) the dollar, (b) EU countries and (c) the rest of world from (i) September 1992 and (ii) February 1993 to latest available date.

Mr. Nelson

The Government took into account a broad range of economic and political factors before sterling's entry into the exchange rate mechanism in 1990. The exchange rate is only one factor affecting exports, imports, output and employment. It is difficult to isolate the effects of the exchange rate from that of other factors such as activity and prices in the United Kingdom and its trading partners. I refer the hon. Member to the answer I gave him on 21 March,Official Report, column 15, which provides references to exchange rate and price data which can be used to calculate the information requested.