STERLING DEVALUATION AND MANUFACTURING INDUSTRY

Early day motion 716, tabled 23 January 2002 by Adam Price (Plaid Cymru). Signed by 10 members.

That this House notes with concern figures recently released by the GMB union which show that 112,000 manufacturing jobs were lost last year and that manufacturing output has been declining for over 12 months; believes that one of the principal problems for manufacturers has been the consistent over-valuation of the pound which has seriously reduced the competitiveness of United Kingdom exports; further notes that there are no signs of the pound weakening under its own steam; agrees with the assessment of the Ernst & Young ITEM club of economic forecasters that an active exchange rate policy is now vital to provide relief to manufacturers and other sectors including tourism, agriculture and coal; and therefore urges the Government to advise the Bank of England to announce its determination to seek a devaluation of the Euro-Sterling exchange rate through appropriate intervention in the exchange markets.

Signatures by party: Labour 6, Plaid Cymru 4.