34. Mr. Gresham Cookeasked the Chancellor of the Exchequer whether, with a view to checking imports, he will require importers to pay cash at the time of the placing of the order, in accordance with the system, details of which have been sent to him, adopted a few years ago in Italy with satisfactory results for the Italian balance of payments.
§ Mr. Roy JenkinsNo, Sir. I am not convinced that such a scheme could usefully be introduced in this country.
Mr. Gresham CookeThe scheme as put in the Question is perhaps a little exaggerated. But would the right hon. Gentleman take it from me, for I was in Italy in April, 1964, when the Italian Government required importers to pay cash within 30 days of the goods arriving, that it had a very salutary effect on the Italian balance of payments at that time? Would he consider something along those lines?
§ Mr. JenkinsThe hon. Gentleman is right to say that, as he puts it, the facts in the Question were a little exaggerated. They were somewhat inaccurate, but I did not point that out until he raised it. But he subsequently raised the question again accurately, and it is true that in 1964–65 die Italian Government made a remarkable swing-round from a position of deficit to a very large surplus, but it is difficult to argue that that particular proposal was unique amongst those which effected that. There would be certain practical difficulties about applying it here in present circumstances.
Mr. J. T. PriceWill my right hon. Friend not be so ready to dismiss the suggestion out of hand? Is he aware that a great many goods are being imported into this country that we do not need and cannot afford and are bad for the country's economic health? While none of us wish to be identified as protectionists in outlook, because we are an exporting nation, there is a point where reason flies out of the window and common prudence and ability exercised by many of our international competitors is 209 not matched by equal vigilance at our own ports.
§ Mr. JenkinsI was at fault if I gave the impression that I dismissed this or any similar suggestion out of hand. All these suggestions must be considered very seriously, but I am not convinced that this would be a useful measure at present. Apart from anything else, its immediate impact would be to worsen our short-term balance of payments.