Exports and Imports (Hansard, 25 June 1953)

HC Deb 25 June 1953 vol 516 cc2078-80 2078

§ 15. Mr. Edelman
asked the President of the Board of Trade if his attention has been drawn to the recent relative decline in exports and increase in imports; and what steps he is taking to preserve a suitable balance in these matters.

§ Mr. P. Thorneycroft
The Government have steadily pursued policies to make the economy more flexible, to rid it of inflation, and so increase the ability of British industries to compete in overseas markets, as well as taking every appropriate opportunity to help our exporters directly in their efforts to increase exports. These policies, combined with a favourable movement in the terms of trade, have gone far towards achieving the balance which the hon. Gentleman has in mind. The United Kingdom's deficit on visible trade has declined from a monthly rate of £102.7 million in the first nine months of 1951, just before we took office, to £63 million in 1952, and to £60.9 million in the first five months of this year.

§ Mr. Edelman
Apart from the right hon. Gentleman's generalisation, is it not the case that the current disparity between exports and imports is now running at the unfavourable rate of over £700 million per annum, and is not that self-indulgent rate likely to lead to national bankruptcy?

§ Mr. Thorneycroft
My answer was far from a generalisation. I gave the hon. Member a specific and marked improvement in the balance of visible trade which has taken place since we took office.

§ Mr. Edelman
But the right hon. Gentleman did not deal with the figure I mentioned. Is it not the case that the unfavourable balance between exports and imports was over £80 million?

§ Mr. Thorneycroft
The position is that the present rate is £609 million compared with a rate of £1027 million when the previous Government were in office.

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§ 18. Mr. Lewis
asked the President of the Board of Trade the items mainly responsible for increasing our monthly imports to £295,700,000 in May, 1953, as against a monthly average of £263,300,000 in the second half of last year; and what was the dollar cost involved for these additional imports.

§ Mr. P. Thorneycroft
The main commodities responsible for this increase, which was, of course, largely seasonal, were: wool, fresh fruit and vegetables, sugar, butter, raw cocoa and meat. The c.i.f. value of imports from the dollar area in May was £690,000 more than the monthly average for the second half of 1952. Imports in May this year were, however, £24.6 million less than in May last year, a reduction of some 8 per cent.

§ 19. Mr. Lewis
asked the President of the Board of Trade if he is aware that the volume of imports in April and May were about 10 per cent. up on the first three months of this year; what was the reason for this rise; and if he will publish in HANSARD the headings of these additional imports together with the dollar costs involved.

§ Mr. P. Thorneycroft
Since the answer is lengthy, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

§ Mr. Lewis
Can the right hon. Gentleman say whether generally these increased imports are for necessitous goods and not, as has been reported rather widely in the Press, for luxury goods such as tobacco and non-essentials?

§ Mr. Thorneycroft
I have just given an answer on the types of goods involved. I would add that the value of imports in April and May this year was some 9½ per cent. less than April and May of last year.

§ Mr. Edelman
Would the right hon. Gentleman refer to the figure which his Department was good enough to give me this morning? Is it not the case that between January and May, 1953, inclusive, the imports were £1,400 million and exports were at the rate of £1,051 million? Is that not a very striking gap between exports and imports to our national detriment?

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§ Mr. Thorneycroft
The position on the balance of visible trade account has shown a very marked improvement on what it was under the previous Government.

Following is the answer: Of the 10 per cent. increase in the volume of imports in April and May compared with the first quarter of this year about half was due to raw materials, particularly crude petroleum and wool, and half to increased imports of sugar, tobacco, butter and fresh fruit and vegetables. Only sugar and tobacco involved a significant increase in the monthly rate of imports from the dollar area amounting to about £10 million, which was rather more than the increase in total value of all dollar imports over the two periods. The increase in sugar imports was seasonal. The increase in tobacco was due to the concentrated arrival of tobacco contracted for last autumn and not to any increase in consumption. Details of the quantities and values of imports of the commodities mentioned, showing the principal supplying countries, are contained in the March and May issues of the Accounts relating to the Trade and Navigation of the United Kingdom (H.C. papers 69—II and IV). I would add that the value of imports in April and May this year was some 9½ per cent. less than in April and May last year.