HC Deb 21 February 1983 vol 37 cc654-5
11. Mr. Chapman

asked the Minister for Trade what were the United Kingdom balance of trade figures for the last month for which figures are available and for the year to 31 December 1982.

Mr. Peter Rees

The current account of the balance of payments in December 1982 was in surplus by £822 million. The balance for 1982 as a whole is estimated at a surplus of £4.6 billion.

Mr. Chapman

While I welcome those figures, which presumably would be improved further if one took into account invisible earnings, will my hon. and learned Friend tell us whether he feels that the recent depreciation in the value of sterling is likely to help or to hinder the United Kingdom's balance of payments during 1983?

Mr. Rees

The figures that I gave take into account invisible exports, which make an invaluable contribution to our export figures. The service sector provides employment for 11½ million of our fellow countrymen. The depreciation of sterling against some other currencies will certainly increase the export opportunities of certain sectors of the British economy.

Mr. Ioan Evans

Will the Minister not be too complacent about those figures? Have not the Government received £40,000 million from the sale of North Sea oil, which is included in the figures that he gave? Will he also confirm that in the current financial year there is a £5,000 million deficit in manufactured goods with the Common Market alone?

Mr. Rees

The hon. Gentleman's final figure is wrong. On a balance of payments basis, the surplus of trade in manufactures last year was about £2.4 billion.

Sir Anthony Grant

Will my hon. and learned Friend confirm that the figures do not substantiate the myth being perpetuated by the Opposition that our manufacturing industry has failed to contribute to our economy? Will he state clearly that our manufacturing industry has held up remarkably well at a time of trade recession and that, because of Government measures, it is probably in a better position to compete in the world?

Mr. Rees

My hon. Friend, who has great experience in these matters, is right. I pay tribute to the export record of the British manufacturing industry. I dissociate myself from the distorted messages of gloom coming from the Opposition Benches.

Mr. Archer

Since £4.4 billion of the £4.6 billion balance to which the Minister referred is represented by oil, is the hon. and learned Gentleman not disturbed by the fact that Morgan Guaranty and the OECD agree that Britain's prospects of long-term recovery are being irreparably damaged, that the CBI is troubled about continued unemployment, that the French Finance Minister is asking for international reflation and that even the American Government are abandoning Reaganomics? At the previous Trade Question Time the Minister suggested that I had not been in my job long enough. Is it possible that he has been too long in his?

Mr. Rees

I am so glad that the right hon. and learned Gentleman is feeling more at home in his present position, but he gave us a series of random, unconnected and largely baseless forecasts. As he mentioned France, I should tell him that the French ran a deficit on their current account last year of about 80 billion francs—about £7½ billion. So that was not a very helpful comparison.