HC Deb 25 June 1968 vol 767 cc220-2
12. Mr. Gwilym Roberts

asked the Chancellor of the Exchequer whether he is satisfied with the results of devaluation in the light of the latest balance of payments figures; and if he will make a further statement on the general economic position.

Mr. Roy Jenkins

The main effects of devaluation and the Budget have not yet had time to work through, particularly on the volume of imports, but export performance has been encouraging.

Mr. Roberts

Now that the half-baked "I'm Backing Britain" campaign has died a natural death, would my right hon. Friend consider introducing a Government-inspired drive to encourage import substitution? Would he consider instituting research into every method in and outside G.A.T.T. which can be used to give advantage to home-produced products?

Mr. Jenkins

Import substitution is of great importance at present. It is, I think, difficult: to stress enough the advantage which there is for the business community and for the community as a whole if we pursue this matter energetically, because it is the key to a steady growth affecting both profits and real wages over the next few years.

Sir C. Osborne

Did the right hon. Gentleman read the article in the Economist on Saturday which stated that the balance of payments deficit for the first six months of this current year was running at £1,300 million against a so-called £800 million deficit in 1964? Does he accept those figures?

Mr. Jenkins

We have not yet seen figures for the first half of this year. I read the article. Questions have been tabled about the first quarter which I shall answer later.

Mr. Maclennan

Has my right hon. Friend had an opportunity of reading the Report of the "Little Neddy" on the agricultural industry concerning the opportunities for import savings of up to £220 million by 1972? Will my right hon. Friend give it the most favourable consideration?

Mr. Jenkins

I will certainly pay careful attention to this Report.

Sir H. Harrison

I should like to reinforce what was said by the hon. Member for Caithness and Sutherland (Mr. Maclennan). The Eastern Counties are prepared to help. Will the Chancellor study carefully this way of saving imports by the agriculture industry?

Mr. Jenkins

I shall study this matter carefully in relation not only to the Eastern Counties, but to the whole of the country. However, it is necessary to have some regard to the public expenditure aspect of the matter as well as the import saving aspect.

Mr. Barnett

As imports are causing the greatest concern, will the Chancellor give his estimate of the import figures for the remaining six months of the year?

Mr. Jenkins

No. I have no further forecast to offer to the House.

Mr. Higgins

In the light of the figures which are available, will the Chancellor tell us whether he thinks his main forecast or his higher forecast is more likely to be achieved, or does he think we shall fall below both?

Mr. Jenkins

I think that the export position is at least as promising as I indicated in my main forecast.