- LONDON: 9, March 2000
Massive public disapproval of Treasury
gold sales, says MORI poll
The majority of the British public who have an opinion disapprove
of Chancellor Gordon Brown's sale of the UK's gold reserves, and of his
turning the proceeds into US dollars, euros and Japanese yen.
Half of the general public believe that 30 per cent or more of Britain's
reserves should be held in gold, against the Treasury's intention of reducing
the country's gold holdings to just 7 per cent of total gross reserves.
Half of the population is convinced that the reduction of the gold reserves
will have a negative impact on both the City of London and Britain in
terms of its economic situation and standing vis-‡-vis the rest of the
world.
These are the main findings of a MORI opinion poll conducted on behalf
of the World Gold Council between 17-21 February this year, among a representative
sample of 2017 adults interviewed in Great Britain.
According to MORI, 48 per cent of the general public oppose the Treasury's
sale of 415 tonnes, from a total of 715 tonnes before sales began in July
1999. Just 12 per cent support the policy. Of the remaining 40 per cent,
14 per cent responded either don't know/no opinion, and 26 per cent said
they neither approved nor disapproved.
"This is a resounding public rejection of the Treasury's policy of selling
415 tonnes of Britain's national gold reserves. We hope the government
will take note of just how thoroughly unpopular this policy is," said
Miss Haruko Fukuda, chief executive of the World Gold Council.
The MORI survey represents the first real test of public opinion on the
Treasury's gold auctions since the first gold auction of 6th July 1999.
The government has carried out four auctions so far. The fifth in the
current series will take place on 21st March, Budget Day. Last week the
government announced that six more auctions will be held, starting from
May this year.The National Audit Office has begun an enquiry into the
gold sales and is likely to issue its full report before the end of this
year.
It should be noted that several of the UK's bigger EU partners' gold
reserves are at least 30 per cent of total reserves. Before the gold auctions
started, the UK held some 17 per cent of its reserves in gold. The MORI
poll reveals that 48 per cent of the British public believe that the UK
should also hold at least 30 per cent of its reserves in gold. A further
11 per cent thought the right level was 20-29 per cent. In other words,
far from reducing the country's gold reserves, 59 per cent of the general
public want to see an increase in the country's gold reserves, to above
the level before the gold auctions started.
The poll also posed two questions concerning the impact on the City of
London if Britain ceased to be a significant holder of gold. Of those
polled, 56 per cent said they thought it would adversely affect the City's
position as a centre of the world's bullion trade, and 50 per cent said
it would damage the City as a financial centre generally.
The survey reveals that a large reduction in Britain's gold reserves
means the following:
Ý 49 per cent think this policy will worsen the long-term stability
of the pound
Ý 48 per cent think it will weaken Britain's ability to weather
economic problems
Ý 47 per cent think it will render Britain more vulnerable to the
financial problems of other countries
Ý 49 per cent believe this policy will undermine Britain's financial
standing
Miss Fukuda said, in commenting on the results of the MORI poll: "This
government claims to listen and respond to the wishes of the people of
this country. On the issue of selling off the country's gold reserves,
it is clearly utterly out of step with the wishes of the bulk of the British
voters.
"The Treasury, which is responsible for this disastrous policy that has
already lost the British taxpayer millions of pounds, has in the past
felt able to brush aside the World Gold Council's calls to cease these
auctions. I wonder if the Treasury will show such lofty disdain for this
forthright condemnation from ordinary British citizens?"
Contacts:
Haruko Fukuda, chief executive, WGC: 0171 930 5171
Gary Mead, head of research, WGC: 0171 766 2719; 01892 549525 (home)
Keith Irons, chairman, Bankside Consultants: 0171 220 7477
Copies of the MORI poll are available from Bankside Consultants, 123 Cannon
Street, London EC4N 5AU The 'topline' results are also available by e-mail,
contact keith@bankside.com
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