Oral Answers to Questions

Debate between John Howell and Mark Hoban

Tuesday 1st November 2011 Commons Chamber

[John Howell (Henley) (Con)]

14. What recent representations he has received from the IMF and the OECD on UK economic policy.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The International Monetary Fund and the OECD regularly hold frank bilateral discussions with each member country. When Christine Lagarde, the managing director of the IMF, visited London in September, she stated:

“In the United Kingdom strong fiscal consolidation is essential to restore debt sustainability, given the UK’s very high structural budget deficit and large financial sector relative to GDP.”

Angel Gurria, secretary-general of the OECD, said yesterday of the UK:

“You were successful. You cleared the markets. The package was credible…The markets never discuss the quality of the rating of the UK.”

That is a consequence of the actions this Government have taken to tackle the mess left behind by the previous Government.

[John Howell]

I thank the Minister for that reply, but what advice has he been given on the consequences of our failing to pay our IMF subscription?

[Mr Hoban]

My hon. Friend asks a very good question. It is a sad indictment of the state of today’s Labour party that it voted against the increase in the IMF subscription negotiated by the—