§ 1. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what further action he proposes to take on the report on invisible earnings, undertaken for the British National Export Council, a copy of which is in his possession.
§ The Chancellor of the Exchequer (Mr. Roy Jenkins)In accordance with the recommendation of the British National Export Council, a permanent Committee was established under the chairmanship of Mr. Cyril Kleinwort
to suggest and where possible implement measures for the encouragement of invisible earnings".The first annual report of this Committee will shortly be published and the Government will give careful and sympathetic consideration to its proposals.
§ Mr. DigbyWill the Chancellor also make some positive proposals of his own on this important subject of invisible earnings and, in particular, will he direct his attention to the excessive proportion of imports coming into this country in foreign ships?
§ Mr. JenkinsI will certainly consider any matter of this sort. We are, of course, very anxious to encourage invisible earnings. The Government's Development of Tourism Bill and other measures have been in this direction, and from the tourist point of view and other points of view we have done very well.
§ Mr. HigginsWould the Chancellor deny that selective employment tax is having an adverse effect on invisible earnings? Would he tell the House what 211 estimate he has made of that adverse effect?
§ Mr. JenkinsWe shall debate this later today, but I would deny that it is having an adverse effect. It obviously falls on certain sectors which produce considerable invisible earnings, but these are sectors which are not price elastic, and they are precisely the sectors in which we have done very well.