Service and Distributive Industries

Oral Answers to Questions — Board of Trade – in the House of Commons at 12:00 am on 11 December 1968.

Alert me about debates like this

Photo of Mr Michael Shaw Mr Michael Shaw , Scarborough and Whitby 12:00, 11 December 1968

asked the President of the Board of Trade if he will specify the respects in which manufacturing industry makes a more direct and immediate contribution to the United Kingdom balance of payments than service and distributive industries, respectively.

Photo of Mr Edmund Dell Mr Edmund Dell , Birkenhead

A larger proportion of the output of manufacturing industry is exported. In general manufacturing industry also competes more with imports than do the service and distributive industries.

Photo of Mr Michael Shaw Mr Michael Shaw , Scarborough and Whitby

Would the hon. Gentleman recollect that his right hon. Friend felt it right that there should be discrimination in favour of manufacturing industries, in the short term? Could he say, in the years, 1966, 1967 or 1968. where the benefit of such discrimination of such matters as Selective Employment Tax is shown in the figures?

Photo of Mr Edmund Dell Mr Edmund Dell , Birkenhead

I can certainly indicate one possible benefit from this discrimination in favour of manufacturing industry. That is that, within the downward turn of the cycle in 1967-68, after the boom in 1966, the fall in manufacturing investment was far less than either was estimated or had taken place on previous similar occasions in similar cycles.

Photo of Sir Keith Joseph Sir Keith Joseph , Leeds North East

Will the hon. Gentle man convey to his right hon. Friend our sympathy following his accident and our best wishes for his speedy recovery?

Would the hon. Gentleman agree that visible trade can be judged only in conjunction with the movement of stocks, that in: he first nine months of 1964 the visible trading deficit was more than half accounted for by the rise in stocks of £260 million, whereas in the first nine months of this year there was a huge visible trading deficit coupled with a falling in stocks of £26 million?

Photo of Mr Edmund Dell Mr Edmund Dell , Birkenhead

I thank the right hon. Gentleman for the remarks in the first part of that supplementary question, which I will certainly convey to my right hon. Friend.

On the subject of stock levels, there was a previous Question on this and I repeat that stock levels, after an initial fall, have been rising in recent quarters. I am, of course, speaking of total manufactured stocks. It is absolutely true, however, that we must in future achieve—I hope we shall because this will help our balance of payments—a far better relationship between total production and the level of stocks in this country.