Exchange Rate Mechanism

Part of the debate – in the House of Commons at 4:23 pm on 23 October 1990.

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Photo of Mr Neil Kinnock Mr Neil Kinnock Leader of HM Official Opposition, Leader of the Labour Party, Member, Labour Party National Executive Committee 4:23, 23 October 1990

No, I am sorry. I have given way several times.

I suppose that the Chancellor knows that if he did give real attention to the supply side he might have to do something more than undertake some City deregulation, some trade union legislation and give some tax handouts. If he really was interested in wanting Britain to succeed, he would do much more. If he really wanted to encourage enterprise and combat inflation, he would be doing what other ERM countries do and use more moderate interest rates in combination with credit controls instead of relying so heavily on high interest rates.

If the Chancellor and the Government really wanted to attack the rigidities, the bottlenecks, the restraints on the productive economy, they would have followed the example of Governments of other countries in the ERM. Those Governments have ensured proper investment in modern transport. This Government have not. Those Governments have invested more in civil research and development. This Government have not. Those Governments have wisely invested more in education and training. This Government have not.