§ 6. Mr. Blakerasked the Chancellor of the Exchequer what detailed studies the permanent Committee on Invisible Exports has undertaken in following up the conclusions of the Bland Committee Report; and if he will make a statement.
§ Mr. DiamondThe Committee's first Annual Report contains details of a number of studies which are completed or in hand, and, where appropriate discussions are in progress with the Departments concerned. I welcome the Committee's examination of ways in which our invisible export performance can be further improved.
§ Mr. BlakerThe right hon. Gentleman is clearly aware that that Committee is currently investigating the effect of the tax structure on invisible exporters. When does he expect this study to be concluded, and will it be published?
§ Mr. DiamondI expect it to be concluded during this year. Whether it will be published or not is a matter for the Committee.
§ Mr. Boyd-CarpenterDoes not S.E.T., by its very nature, discriminate against invisible exports?
§ Mr. DiamondS.E.T. does not discriminate against anything.
§ 14. Mr. Turtonasked the Chancellor of the Exchequer whether he has considered the recommendation of the Chairman in the 1968–69 Annual Report of the Committee on Invisible Exports that the Central Statistical Office should show clearly gross payments and receipts and net balances for Government transations on the one hand, and private invisible earnings on the other, in all summary tables produced; and what action he proposes to take.
§ Mr. DiamondI have nothing at present to add to the reply which my right hon. Friend the Financial Secretary gave to the hon. Member for Wycombe (Mr. John Hall) on 11th June.—[Vol. 274. c. 265.]
§ Mr. TurtonDoes the right hon. Gentleman recollect that I raised this matter as long ago as last February, when I was given a negative reply by the Chancellor of the Exchequer, and that since that date this country's invisible earnings and the outflow of private capital have been misrepresented in the official accounts?
§ Mr. DiamondI do not think that I could accept the latter part of the right hon. Gentleman's supplementary question. I recognise, in answer to the earlier part, his great concern with this matter. I assure him that the Government are concerned as well and that the matter is being fully examined.
§ Mr. SheldonIs my right hon. Friend aware that the figures, just published, for the first quarter of 1969 show that Government expenditure overseas is running at one of the highest ever rates? Will he look into this and make sure that we are doing everything possible to bring it down?
§ Mr. DiamondYes, Sir, but my hon. Friend will appreciate that one reason for the increase in that quarter was the large increase in aid payments.
§ 15. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what consideration he has given to the effect of the tax structure on invisible earnings; and what conclusions he has reached.
§ Mr. DiamondThis is a matter on which my right hon. Friend is always willing to consider specific suggestions, and, where possible, he has taken steps to help.
§ Mr. DigbyAs S.E.T. was justified on the ground that it would help exports, is this not a rather negative tax from the point of view of invisibles and is it not high time that a positive tax was arrived at?
§ Mr. DiamondIt may be established that S.E.T. has helped invisible exports. It is certainly the case that invisibles are 215 doing very well indeed, for which we are most grateful.
§ 16. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what action he intends to take on the latest Report of the Invisible Exports Committee.
§ 22. Mr. Maurice Macmillanasked the Chancellor of the Exchequer whether he will make a statement on the recent Annual Report of the Invisible Exports Committee.
§ Mr. DiamondI would refer the hon. Gentlemen to the written replies given to Questions by the hon. Member for Wycombe (Mr. John Hall) by my right hon. Friend the Financial Secretary and my hon. Friend the Minister of State at the Board of Trade on 11th and 12th June respectively.—[Vol. 784, c. 265; Vol. 784, c. 295.]
§ Mr. DigbyWill the right hon. Gentleman give serious consideration to this report and the strong views expressed in it, particularly the fact, which is brought out in the document, that Government expenditure abroad has risen from £100 million a year to £500 million a year since the early fifties, figures which speak for themselves?
§ Mr. DiamondWe are, of course, giving the report the most careful and sympathetic consideration. We welcome a good deal of what is said in it.
§ Mr. MacmillanDoes the right hon. Gentleman recognise that in the past we have seldom, if ever, achieved a surplus on our visible account while the surplus on invisibles has been proportionately larger than it is now? Will he consider introducing a policy of reinforcing success, rather than concentrating so much on the visible side?
§ Mr. DiamondUntil I heard the last few words of the hon. Gentleman's supplementary question, I thought I would be in complete agreement with everything he was saying. I do not believe that one should concentrate on anything to the exclusion of everything else. I do not see why one should not try to help visible and invisible exports.
§ Sir F. BennettThe right hon. Gentleman has asked for helpful suggestions, and I will make one. Will he have another look at the operation nowadays of 216 the 25 per cent. levy on the dollar premium, which many people with expert knowledge consider to be operating as a law of diminishing returns from the point of view of holding back new private portfolio investments overseas which could otherwise make a valuable contribution to our balance of payments?
§ Mr. DiamondWithout undertaking to do anything or even giving the impression that I may do something, I assure the hon. Gentleman that if he puts, as he has, a serious suggestion to me and asks me to consider it, I will, of course, be glad to do so.