Halifax Summit

Part of the debate – in the House of Commons at 3:31 pm on 19 June 1995.

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Photo of Mr John Major Mr John Major , Huntingdon 3:31, 19 June 1995

What is irrational in the hon. Lady's question is the belief that exchange rate stability can be imposed when the flows over the New York exchange in a day probably equal the sum total of the foreign exchange reserves of all the seven countries that were at the summit. That is completely irrational, to the point of being economically dotty. The only way in which people will get exchange rate stability is by having underlying economic stability. That was accepted by all the seven Heads of Government who sat round the table at the G7 summit.

If the hon. Lady is indicating to me that it is now Labour party policy to try in some artificial way to sustain exchange rates with open market operations, I look forward at long last to a statement on policy from the shadow Chancellor on that issue, if on none other. He seems to have no policy on most issues. If he is being pressed by his Back Benchers on that issue, I am sure that my right hon. and learned Friend the Chancellor will press him on whether that is indeed the principal Opposition party's policy.