Economy (Reflation)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 7th March 1967.

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Photo of Mr Paul Channon Mr Paul Channon , Southend West 12:00 am, 7th March 1967

asked the Chancellor of the Exchequer what proposals he now has for reflating the economy.

Photo of Mr James Dickens Mr James Dickens , Lewisham West

asked the Chancellor of the Exchequer if he will make a statement on the reflation of the economy.

Photo of Mr Cyril Osborne Mr Cyril Osborne , Louth Borough

asked the Chancellor of the Exchequer in view of the lack of confidence now felt in many sections of trade and industry and the depressed balance sheets being reported, when he proposes to take steps to reflate the economy; what will these steps be. how long they will take to become effective; and what effect they will have on his plans to strengthen sterling.

Photo of Mr Paul Channon Mr Paul Channon , Southend West

Does that reply mean that the Chancellor hopes to make some progress towards this end in his Budget statement?

Photo of Mr James Callaghan Mr James Callaghan The Chancellor of the Exchequer, Member, Labour Party National Executive Committee

No, Sir. It means that I cannot anticipate what I shall say on 11th April.

Photo of Mr James Dickens Mr James Dickens , Lewisham West

Notwithstanding that reply, does my right hon. Friend accept the view of the London and Cambridge Economic Service that the loss to the British economy in 1967 caused by the Government's policy of deflation will amount to £1,000 million, in terms of lost output? If so, does not he agree that this is a most shortsighted and socially undesirable way of solving a phoney balance of payments crisis?

Photo of Mr Peter Hordern Mr Peter Hordern , Horsham

Does the right hon. Gentleman look for a fall or an increase in productivity this year?