Import and Export Prices (Hansard, 31 July 1958)

§ 41. Mr. Ellis Smith
asked the President of the Board of Trade if he will state the percentage reduction, during the past three years, of import prices of raw materials; to what extent benefits from the reductions accrued to the export trades; and what was the comparable percentage of reductions of export prices.

§ Sir D. Eccles
The index of import prices of basic materials rose by 9 per cent. between June, 1955, and April, 1957, and fell by 15 per cent. betwen April, 1957 and June, 1958. I cannot estimate the varying benefits to the export trades, but the proportion of the value of all 1582 manufactures attributable to imported materials is about one-quarter, and there is a considerable time lag before changes in prices could be reflected in those of the finished product. Export prices have increased by 8 per cent. over the same period, although they stopped rising about a year ago.

§ Mr. Ellis Smith
Does the right hon. Gentleman agree that our balance of payments benefited to the extent of approximately £258 million during the past six years? If so, having regard to the importance of the export trade, should that not reflect itself in benefits in prices in the export trade?

§ Sir D. Eccles
I agree with the hon. Gentleman that the terms of trade have moved in our favour, but the proportion of the price in exports attributable to a fall of 15 per cent. in the imported content is really quite small.

§ 44. Mr. Ellis Smith
asked the President of the Board of Trade the percentage of reduction in the price of imported raw materials during the past twelve months, and the percentage price reductions charged to manufacturing industries.

§ Sir D. Eccles
The index of import prices of basic materials fell by about 15 per cent. between June, 1957, and June, 1958. There is no index of prices paid by manufacturing industry for imported materials.

§ Mr. Ellis Smith
In view of the importance of the export trade, particularly for the future, has not the time arrived when the President of the Board of Trade should consider the serious effect of action taken by those trade associations which maintain the prices of raw materials to the extent that they do?

§ Sir D. Eccles
If the hon. Gentleman could give me information on that subject, I should be glad to have it, but I think that the lower prices of imported materials are beginning to work their way through the economy.