§ 7. Mr. Wingfield Digbyasked the President of the Board of Trade what evidence is available of the extent of the increase in imports with the ending of the surcharge.
§ Mr. DigbyHas the right hon. Gentleman formed no estimate? Judging from the experience of what happened to trade imports when the surcharge was reduced in May and June of last year, is it not to be anticipated that something of this kind will happen—without in any way deprecating the removal of the surcharge?
§ Mr. JaySo far, we have had only seven days and any estimate, therefore, would not be more than a guess. It is perfectly clear that we must expect an increase in imports in the first two months after the abandonment of the surcharge. However, that will be an exceptional increase, and I hope that no one will be misled by it.
§ Sir A. V. HarveyWhy did the President of the Board of Trade announce six months in advance that he intended to abolish the surcharge? Was it not an extraordinary thing to do? The crisis has happened in the middle. Should it not be continued for another few months 1545 while the country is in economic difficulties?
§ Mr. JayNo, Sir. I do not think so. Overseas countries and business men in many industries here and abroad had a right to know a reasonable time beforehand what the position would be.
§ Mr. BarnettIn view of the danger of increasing imports when we reflate again, would the President of the Board of Trade consider the use of the financial method of restricting imports by the prime deposit system as a temporary means of dealing with the problem?
§ Mr. JayWe have considered that, but it would be much better to achieve a balance by increasing exports, as we are now doing, than by restricting imports.