§ Q2. Mr. William Hamiltonasked the Prime Minister if he will take steps to improve the co-ordination between those Departments responsible for furthering the campaign of import savings.
§ The Prime MinisterMy right hon. Friends already work closely together on this matter.
§ Mr. HamiltonDoes my right hon. Friend agree that the continuing problem of the balance of payments is largely due to our inability to cut imports? Will he say whether he is satisfied with the progress which has been made in import substitution since 1964?
§ The Prime MinisterIn his Budget speech my right hon. Friend the Chancellor of the Exchequer expressed concern about the continuing increase in imports which has been going on from the early 1950s at a pretty rapid rate, and he also expressed disappointment about the failure of import substitution to pick up following devaluation.
At the same time, while I recognise that the import deposit scheme has been in existence, imports in the last three months are less than 1 per cent. above the average for February-April last year, which suggests some halting in the process, but it needs to go a good deal further. However, it takes time to build up the capacity of the import-saving industries.
§ Sir C. OsborneHow much import saving does the Prime Minister think will be achieved in the coming year?
§ The Prime MinisterThat will be difficult to quantify, but my right hon. Friend, who, as he said last night, has given a great many more figures and forecasts on these matters than in the past, dealt with that in his Budget speech.