§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer (1) by whom the United Kingdom was represented at the recent meeting of the European Monetary Institute to co-ordinate interest rate policy; what was the purpose of that meeting; what proposals were made to co-ordinate interest rate policies or to use the leeway provided by 15 per cent. bands to achieve economic convergence; and what is the Government's policy on the proposals;
18W(2) who represents the United Kingdom in the discussions between the EEC central banks aimed at restoring the former currency parities within the exchange rate mechanism; what steps are taken to ensure the views expressed by the United Kingdom representative have had the prior approval of the Government; and what undertakings, assurances and understandings, express or implied, have been given concerning the future rate of exchange between sterling and the Ecu.
§ Mr. NelsonThe Governor of the Bank of England is a member of the council of the European Monetary Institute —EMI. Article 10 of the EMI statute states that the proceedings of the EMI council meetings shall be confidential, though the council may, acting unanimously, decide to make the outcome of its deliberations public.
Articles 3 of the EMI statute requires the EMI to carry out the tasks and functions conferred upon it by the Maastricht treaty and the statute without prejudice to the responsibility of the competent authorities for the conduct of monetary policy within the respective member states. In accordance with article 8 of the EMI statute, the Governor, representing the Bank of England, acts according to his own responsibilities. These include implementation of the Government's monetary policy.
Decisions concerning the parities of participating currencies in the ERM are taken by Ministers and central bank governors of the member states. No undertakings, assurances or understandings, express or implied, have been given concerning the future rate of exchange between sterling and the ecu.