Will the Minister agree that the continuing absence of Britain and the British currency from the system is putting pressure on the system and on the member states, as happened last year in our case when the Government devalued our currency within the EMS to achieve a realignment of our relationship with sterling? Would the Minister agree that it is vitally important in any discussions which take place that Britain is encouraged in the strongest possible way to join the system? Would he be able to comment on the progress that has been made towards establishing the ECU as the basic unit of currency within the system, which is in fact the second chapter of the proposal for the EMS introduced some years ago?

As I said to the Deputy on previous occasions here, I would consider it highly desirable if we could arrive at a point where the pound sterling could be brought within the EMS. As I also said to the Deputy on previous occasions, we have made it as clear as we could, in the discussions that have been going on in regard to the system, that this is a result we would wish to see. It is not, as the Deputy appreciates, a result which we on our own can bring about.

With regard to the second part of his question about progress towards the second stage of EMS, this, in my view, has been regrettably slow. There is an ongoing discussion and examination of measures that could be applied in order to bring us to the point where we would progress to the second phase of EMS; but the matter to which the Deputy first referred, the position of sterling, is a fairly substanial stumbling block on the road to making that transition. I agree with the Deputy that the position of sterling vis-à-vis the EMS has created some difficulty for us in the past and our management of exchange rate policy has been designed as far as we can to offset those effects.

I appreciate the Minister acknowledging the difficulty that has been created for us. In view of that acknowledgement that it poses for us, particularly all member states in the system, a grave problem, as was evident last year when we had to realign within the EMS because of the Government's stated intention to reduce the value of our currency against a currency outside the system, will the Minister try to win every possible support from his colleagues to ensure that the stability of the system, the purpose of the system and the cohesion of economic and monetary stability in Europe, which is central to all this, is brought to bear particularly on the British Government as a matter of urgent priority, otherwise the possibility of achieving any of the aims of the system cannot be realised?

I told the House what my feelings on the matter are and what the Government's feelings are in relation to the basket of currencies that are actually in the EMS. I am sure the Deputy will understand if I tell him that I do not want to go any further in being specific publicly about the efforts we will make. I believe we are agreed on the desirability of bringing about the kind of change in the system to which he refers. I am sure the Deputy will also agree that there are some parts of the effort which are probably best not conducted in public. I believe we are agreed essentially on the objective. That was reflected in the action we took last March, which, as I said then and I repeat now, was based on our particular concern with bringing about the result we need in terms of our effective exchange rate.