Bank of England (Hansard, 2 June 1997)

§ Mr. Redwood
To ask the Chancellor of the Exchequer what proposals he has for the tenure of(a) the Governor, (b) Deputy Governor and (c) Members of the Court of the Bank of England; and how he plans to meet the requirements of the Maastricht treaty in this area. [287]

§ Mr. Gordon Brown
The Government propose that the Governor and the two Deputy Governors will be appointed for five year terms. The non-Executive Members of the Court will be appointed for three year terms. The Government's decision to give the Bank operational responsibility for setting interest rates is a British solution, designed to meet British domestic needs for stability. Decisions on EMU will be taken if and when required, and will have to be agreed by Cabinet, Parliament and the people.

§ Mr. Redwood
To ask the Chancellor of the Exchequer if the measures he has proposed for the independence of the Bank of England meet all the requirements for bank independence in the Maastricht treaty. [299]

§ Mr. Brown
No. The measures proposed are different in a number of key respects. Further legislation on the Bank would be required if the UK wanted to join EMU.