Europe

Part of the debate – in the House of Commons at 12:00 am on 16 November 1966.

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Photo of Mr David Ginsburg Mr David Ginsburg , Dewsbury 12:00, 16 November 1966

One could also look at the question of invisibles. No estimate is possible here. Britain has important invisible trade earnings, and there is no doubt that there are great possibilities, particularly in insurance, for British earnings should we go into Europe.

One of the things that is argued in relation to the problem of the balance of payments, and the weakness of the economy, is the suggestion that the difficulties which the British Government and the British economy have suffered during the last two years with regard to inflation are a unique British problem, something which only we have experienced, and therefore we are too weak and tender a plant to go into the E.E.C. This is not the case. In 1965 Germany went through an experience almost as traumatic as our own. Wages and salaries in Germany went up by 9 per cent. Productivity—very familiar figures—went up by only 3·7 per cent. The Germans had a very serious inflationary problem in 1965. The Dutch had their troubles, and so did the Belgians, the French and the Italians. Indeed, in 1963 the Italians had a deficit on their balance of trade of £400 million. When one considers that Italy has a total volume of trade half that which we have, again one sees that we have nothing to fear, and nothing of which to be ashamed.