HC Deb 23 January 1968 vol 757 cc196-7
15. Mr. Raphael Tuck

asked the Chancellor of the Exchequer when he expects to restore the export rebate.

Mr. Roy Jenkins

Our exports have been made more competitive by devaluation and under present circumstances the Government have no intention to restore this rebate.

Mr. Tuck

Is it not about time that the Government realised that it is no use their sitting with their backsides in a trough full of cold water which is rapidly freezing, surrounded on all sides by guns, but that they ought to get out and heat that trough and get ahead with producing wealth and encouraging exports?

Mr. Jenkins

I found my hon. Friend's metaphor a little mixed, but I endeavoured to follow it is closely as I could. It certainly is our intention to get out and increase exports, but it has also to be borne in mind, as I have told the House on previous occasions, that there is a danger of escalating protectionism throughout the world and we have to be careful not to assist that process.

Mr. Patrick Jenkin

What representations did the Government receive from the Americans in regard to our export rebate, and what representations have the British Government made to the American Administration about the proposals announced by President Johnson recently?

Mr. Jenkins

I do not think it is primarily a matter of representations, but we must watch and see very carefully what the Americans do about the possible introduction of an export rebate.

Mr. Sheldon

Will my right hon. Friend take up strongly with the United States Government this action, which may have a very harmful effect on our exports to the United States when, as he mentioned, we voluntarily withdrew ours?

Mr. Jenkins

I am aware that the American action could have a very adverse effect and could lead to a very undesirable process. We must consider our own position in relation to what they may or may not do.

Sir S. McAdden

Can the Chancellor tell us, if this export rebate was so soon to be done for, what it was begun for?

Mr. Jenkins

It was begun in circumstances in which devaluation had not given our exports a competitive advantage, in order to give them a small competitive advantage. The advantage arising from devaluation, if fully exploited, should of course be far bigger than anything resulting from the export rebate.