HC Deb 12 July 1966 vol 731 cc1195-6
10. Sir C. Osborne

asked the Chancellor of the Exchequer what quotas or other physical controls he proposes to put on imports into the United Kingdom when the present surcharge of 10 per cent. is taken off; what other safeguards he proposes to prevent excessive imports seriously affecting the balance of payments; and if he will make a statement.

44. Mr. Hamling

asked the Chancellor of the Exchequer what steps he proposes to take to reduce the excessive imports of manufactured consumption and capital goods when the 10 per cent. surcharge is abolished.

Mr. Callaghan

Her Majesty's Government do not intend to replace the temporary import charge by other physical controls. My Budget measures, affecting imports as well as other items, were designed to safeguard the balance of payments.

Sir C. Osborne

If the taking back of the surcharge will make no material difference to the balance of payments problem, why was it put on originally?

Mr. Callaghan

It has had a substantial effect, but that effect is wearing off and getting less every year that passes.

Mr. Barnett

Will my right hon. Friend not close his mind completely to the question of import quotas? Does not he agree that the other alternatives could be even more difficult?

Mr. Callaghan

I am not sure what other alternatives my hon. Friend is referring to. It is not, in my view, necessary to replace the temporary import surcharge by physical controls now.

Mr. Clark Hutchison

Will the right hon. Gentleman consider using the tariff and quota system to the utmost necessary?

Mr. Callaghan

I would not rule out the use of any instruments if they were demanded. One would hold oneself free to use any instrument.

Mr. Dickens

Is my right hon. Friend aware that many on this side of the House consider that selective import controls are much preferable to measures resulting in unemployment? Will he not exclude this possibility from his mind in the next few months?

Mr. Callaghan

The Government's policy has been clearly based on the preservation of full employment and using necessary instruments in order to achieve it.