HC Deb 11 December 1968 vol 775 cc393-5
2. Mr. Gordon Campbell

asked the President of the Board of Trade what measures he is now taking to improve the balance of trade.

47. Mr. Cronin

asked the President of the Board of Trade what further proposals he has for increasing exports and diminishing imports, having regard to the latest balance of trade figures.

Mr. Dell

The Government are pursuing a wide range of measures designed to promote exports and encourage import saving.

Mr. Campbell

Since there has been little change a year after devaluation, and since the Government apparently expect the effect of the import deposits scheme to be only marginal, are we not in a more serious situation than the Government have so far recognised?

Mr. Dell

I do not think the hon. Member is right in saying that there has been little change. On the contrary, the visible trade deficit has been improving substantially on a three-monthly basis and moreover, exports are on a sharply rising trend. Together with the import deposits scheme, this creates considerable confidence in our acheiving balance very shortly.

Mr. Cronin

Will not my hon. Friend agree that there is still scope for direct attack on this problem, perhaps by further import restrictions of luxury goods, consistent with our obligations to G.A.T.T. and E.F.T.A.? Will he also put more pressure on firms to export, particularly those which are getting large Government contracts and living largely at the expense of the taxpayer?

Mr. Dell

I agree with my hon. Friend that more can be done by way of import substitution, but on the restriction of imports, my hon. Friend knows what has been done with the import deposits scheme. A great deal of encouragement has been given by the Government to import substitution and to exports, and the sharply rising trend in exports to which I have referred is a substantial factor in our present situation.

Mr. Michael Shaw

Does not the hon. Gentleman consider that the latest issue of the Bank of England Quarterly Bulletin makes very disturbing reading, in view of its forecast of a continuing deficit in the last quarter of this year? Is it not accepted that the real problem is the new factor that appeared for the first time in November, 1964, namely, a lack of confidence which is now overriding all touches on the tiller made by the Government?

Mr. Dell

I think that the real character in our present situation is shown by the continuing improvement in our visible trade deficit. We have to achieve as rapidly as possible a trade balance and a substantial balance of payments surplus. There is nothing in the current facts of our situation that in any way justifies lack of confidence. On the contrary, the current figures show that there is sub stantial reason for confidence in our future prospects.