HC Deb 03 June 1997 vol 295 cc154-5W
Mr. Mitchell

To ask the Chancellor of the Exchequer what policy objectives underlie the Government's purpose in raising nominal and real exchange rates; and if he will estimate by how much the public sector borrowing requirement increased as a result of the increase in nominal and real exchange rates since 1995. [1528]

Mrs. Liddell

The Government do not have a policy of raising nominal or real exchange rates. The Government want a stable and competitive pound over the medium term, consistent with their objective of price stability. It is impossible to estimate the effects on the PSBR of the exchange rate appreciation since 1995, which will depend on the extent to which a higher exchange rate has affected the level and composition of gross domestic product.

Mr. Mitchell

To ask the Chancellor of the Exchequer what estimate he has made of the effect of rises in exchange rates on output and employment in(a) manufacturing industry and (b) the rest of the economy since 1994. [1558]

Mrs. Liddell

There are many factors, in addition to changes in the exchange rate, which can affect output and employment in manufacturing industry and the rest of the economy; and it is difficult to isolate their separate effects. However, the Government are aware that the recent appreciation of sterling is making life difficult for manufacturing industry.

Mr. Mitchell

To ask the Chancellor of the Exchequer what has been the trade-weighted change in the value of (i) sterling, (ii) the dollar, (iii) the D-mark and (iv) the yen since 1985; and if he will indicate to the latest available date the corresponding changes in(a) the unit cost of labour, (b) producer prices and (c) consumer prices. [1564]

Mrs. Liddell

The information requested falls within the responsibility of the Chief Executive of the Office for National Statistics. I have asked him to arrange a reply to be given.

Letter from Tim Holt to Mr. Austin Mitchell, dated 3 June 1997: The Chancellor of the Exchequer has asked me to reply as the Director of the Office for National Statistics to your recent question on the change in the value of Sterling, the US Dollar, the Deutschemark and the Japanese Yen since 1985; and also about Unit Labour Costs, Producer Prices and Retail Prices. The information you have requested about exchange rates is published by the Bank of England in Table 26 of their publication Bank of England: Monetary and Financial Statistics. More historic data can be obtained from the publication Bank of England: Statistical Abstract. The information you have requested about Unit Labour Costs is published by the ONS in table 4.1 of Economic Trends. More historic data can be obtained from the Annual Supplement to Economic Trends. Producer Prices are also published by the ONS—in table 3.1 of Economic Trends. More historic data can be obtained from the same Annual Supplement referred to above. Information on Retail Prices going back to 1985 is available from table 11 of the ONS Business Monitor MM23—Retail Prices Index.

Copies of all these publications are available in the House of Commons Library.

The data published by the ONS is also available from the ONS Database. This can be accessed via the House of Commons Library.

Mr. Mitchell

To ask the Chancellor of the Exchequer what assessment has been made of the effect of the appreciation in the nominal value of the pound between the fourth quarter of 1994 and the second quarter of 1997 on the rate of inflation, manufacturing output and employment. [1550]

Mrs. Liddell

There are many factors, in addition to changes in the nominal value of sterling, which can affect the rate of inflation, manufacturing output and employment; and it is difficult to isolate the separate effects. However, the Government are aware that the recent appreciation of sterling is making life difficult for manufacturing industry.