Balance of Trade

Oral Answers to Questions — Trade – in the House of Commons at 12:00 am on 24 January 1983.

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Photo of Mr David Alton Mr David Alton , Liverpool Edge Hill 12:00, 24 January 1983

asked the Minister for Trade what is the latest available monthly figure for the United Kingdom balance of trade and the corresponding figure 12 months ago.

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

The current account of the balance of payments in November 1982 was in surplus by £700 million, compared with £108 million in November 1981.

Photo of Mr David Alton Mr David Alton , Liverpool Edge Hill

Will the Minister confirm that that increase is due primarily to our increased oil revenue and that during the past 12 months the balance in manufacturing industry has declined by one-third?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

No, I will not confirm that, but I will confirm that the increase was due to rather low figures in November 1982. Perhaps that provides a rather unusual answer to the hon. Gentleman's question, which he may not have expected.

Photo of Mr Dale Campbell-Savours Mr Dale Campbell-Savours , Workington

Does the hon. and learned Gentleman accept that there is a difference between planned trade and the unilateral introduction of protectionist policies, which are the last stand of the free trader?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

I have never understood either of those two formulations, which I suspect come from the fevered minds of those in the Labour research department.

Photo of Mr Robert Adley Mr Robert Adley , Christchurch and Lymington

As the Opposition seem keen to remind my hon. and learned Friend of past events, may I draw his attention to the 1964 general election and the fact that the right hon. Member for Huyton (Sir H. Wilson) fought it on the slogan of "An £800 million deficit"? Will my hon. and learned Friend ask the Opposition what they would produce as a slogan for a Government who have been able to produce a £700 million surplus in one year?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

I suspect that their slogan would be a 30 per cent. devaluation.

Photo of Dr Jack Cunningham Dr Jack Cunningham Shadow Spokesperson (Business, Innovation and Skills), Shadow Spokesperson (Industry)

Is the Minister aware that, in spite of his bluster from the Dispatch Box today, the CBI is forecasting a fall in new orders, particularly in new export orders? Against that background, and of evidence from firms that have improved their efficiency, cut their costs to the bone and paid wage increases below the rate of inflation, how does he expect British exporting manufacturing industry to survive?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

As I said at an earlier point in these exchanges, I am not here to trade forecasts with the Opposition Benches, because there are many and various such forecasts. I have noted the CBI's figures. I have also noted the Industry Act figures for November. The House will recall that the Chancellor of the Exchequer, who has access to the best possible information, thinks that possibly the Industry Act figures in November were a little gloomy.

Photo of Mr Tony Marlow Mr Tony Marlow , Northampton North

Is it not right that the CBI figures were put forward before the change in the exchange rate, particularly against the franc and the deutschmark, and, since that change has come about, are not the prospects for our manufacturing industry with regard to exports much healthier than they were before?

Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal

It is possible that with its renewed competitiveness, British industry will be able to take advantage of the depreciation of the pound. The Opposition Front Bench may not have noticed that there has been a depreciation against the yen of about 18 per cent., which may possibly make a difference to our prospects in Japan.