Orders of the Day — Economic Affairs

Part of the debate – in the House of Commons at 12:00 am on 7th November 1967.

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Photo of Mr James Callaghan Mr James Callaghan The Chancellor of the Exchequer, Member, Labour Party National Executive Committee, Treasurer, Labour Party 12:00 am, 7th November 1967

That is what I am coming to, if my hon. Friend will only contain himself in patience. The Government's policy is directed to ensuring that there is a higher level of use of resources in Wales, Scotland, the North West and the North without overheating Lewisham, London the South East and the Midlands, as we have done in the past. This is why I have resisted general reflation. We can float off in some ways the Merthyrs and the Ebbw Vales on the tide of general reflation but it does not deal with their problems and it precipitates the next balance of payments crisis. I will fight for this policy as long as I am here. I therefore refuse to take any further measures of general reflation in present circumstances as long as I am here.