§ 17. Sir C. Osborneasked the Chancellor of the Exchequer if he is aware that since devaluation import prices have increased by 9½ per cent. and export prices by only 43½ per cent.; how much 1020 this further increases Great Britain's balance of payments problems; how long he expects this situation to continue; and what steps he proposes to reverse this trend.
§ Mr. Roy JenkinsI would refer the hon. Member to the Answer which he was given by my right hon. Friend the President of the Board of Trade on 24th April.—[Vol 763, c. 209–10.]
§ Sir C. OsborneBut that was a completely unsatisfactory Answer. Is not the Chancellor aware that we import half our food and all our raw materials, that we are paying 9 to 9½ per cent. more in import prices and that we export one-third of what we manufacture and get 14 per cent. less for that? Surely that must increase the deficit on our balance of payments. Will he explain why he thinks there is no truth in what I am saying?
§ Mr. JenkinsThe hon. Gentleman is saying so many things that I would hesitate to say that there is no truth in any of them. What is inevitably the case is that devaluation increases the price of imports and, broadly, decreases the price of exports, which is one reason why it improves the competitive position of exports and should also improve the competitive position of import substitution.
§ Mr. WinnickWhile there are strong reasons for not doing so, are there not equally strong reasons in the present difficulties for having, for a brief period, some degree of import control?
§ Mr. JenkinsAs my hon. Friend recognises, there are very strong reasons against that.
§ Sir G. NabarroDoes the right hon. Gentleman consider that it would be unpatriotic to observe that many of us think that the balance of payments position is steadily deteriorating and not improving?
§ Mr. JenkinsI note the hon. Gentleman's views, which I treat on this as on all other subjects with the respect they deserve.