§ Mr. Barry JonesTo ask the Secretary of State for Wales what representations he has received on the impact of current sterling levels upon the exporting industries in Wales; and if he will make a statement. [33538]
§ Mr. HainI have received two such representations. The Government recognise the difficulties for exporters and manufacturers affected by the strong pound. The effect on exchange rates and exports is a factor that the Bank of England takes into account in determining interest rates.
§ Mr. AncramTo ask the Secretary of State for Wales if he will estimate the number of jobs lost by companies in Wales because of the changes in exchange and interest rates since 1 May 1997(a) in the current financial year and (b) in each of the next two financial years. [33620]
§ Mrs. LiddellI have been asked to reply.
The economic effects of exchange rate and interest rate changes are difficult to isolate, especially at the regional level. The claimant unemployment rate in Wales fell from 6.6% to 5.7% between May 1997 and January 1998. Low inflation and responsible wage bargaining will be key factors in securing healthy longer term job prospects.