HC Deb 11 December 1968 vol 775 cc405-6
20. Mr. Kenneth Baker

asked the President of the Board of Trade if he will give his estimate of the likely size of the deficit on visible trade in 1968.

Mr. Dell

No, Sir. I shall wait until statistics for the whole year are available.

Mr. Baker

I appreciate the Minister's reluctance to stick out his neck, but would he agree to comment on the estimate made by the National Institute that the deficit on visible trade this year will be £791 million, which will be the worst in the history of Britain? Does not this contrast with the record year expected in invisible earnings this year, and is this not a case of the gnomes of the City having to bail out this country again?

Mr. Dell

It was always expected, and said at the time, that the initial effect of devaluation would be to increase the value of imports more than exports in sterling terms in the short term. But there is now a fast-rising trend of exports and I see no reason why hon. Members opposite find it so difficult to welcome this fundamental and essential fact in our current situation.

Mr. Winnick

Would my hon. Friend not agree that, although some excellent work is being done by many firms and individuals in the export drive, there are speculators in the City who are far more concerned with undermining a Labour Government and Parliamentary demo- cracy itself, than with helping the country's economic position?

Mr. Dell

I note what my hon. Friend says. What I am most concerned with is building up the nation's exports of both visible and invisible character so that we can get into a balance of payments surplus as rapidly as possible.