HC Deb 11 December 1968 vol 775 cc403-4
15. Mr. Tom Boardman

asked the President of the Board of Trade what has been the particular cause of the increase in the volume of imports of finished manufactures in the first nine months of 1968; and to what extent this increase corresponds with estimates made before the Budget.

Mr. Dell

These imports, about 70 per cent. of which are capital goods, have been rising strongly since the 1950s, in common with the experience of other industrial countries. The increase in volume this year has been about two-thirds the average over the previous 10 years. This slowing down reflects the pause in the growth of home expenditure on plant and machinery. It is not the practice to discuss forecasts of detailed categories of imports.

Mr. Boardman

A large part of the increase in the last nine months comes in the post-devaluation period, and a great deal of it comes in imports of goods which could be manufactured in this country, such as footwear. What is the cause of the increase in products of that type?

Mr. Dell

I have already made clear that the Government would be glad to see a great deal of additional import substitution. The hon. Gentleman referred to imports of footwear. These, no doubt, are due to the competitiveness of exports from other countries. British industry also is making efforts to export to many other parts of the world, and I hope that these efforts will be successful.

Mr. Patrick Jenkin

Is not the significant fact regarding these imports of industrial manufactured products, machine tools and so on, that the value has risen by the full amount of the price increases as a result of devaluation, and does not that demonstrate that this is essentially a competitive trade in which specialisation is the guiding light? Do not those facts show up the short-sightedness of Government policies which increase the cost of machinery which we do not make in this country?

Mr. Speaker

Order. Supplementary questions must be brief.

Mr. Dell

A great deal of international trade arises from specialisation. That is what international trade is all about. However, that does not mean that there are not considerable opportunities for import substitution, of which, I hope, British industry will increasingly take advantage.