HC Deb 26 November 1969 vol 792 cc411-3
20. Mr. Hall-Davis

asked the President of the Board of Trade if he will make a statement about his proposals for new ways of encouraging invisible exports.

53. Mr. Blaker

asked the President of the Board of Trade if he will make a statement about his new proposals for encouraging invisible exports.

55. Mr. Ridley

asked the President of the Board of Trade what steps he proposes to take to increase the United Kingdom's invisible trade surplus.

Mr. Mason

The Government give assistance in a number of ways. I shall be discussing the situation with the Committee on Invisible Exports next month.

Mr. Hall-Davis

As experience since devaluation has shown that there is a direct relationship between the volume of invisible exports and larger costs to invisible importers overseas, will the right hon. Gentleman discuss in these talks the possibility of reducing invisible export costs by the abolition of S.E.T. paid by those who are invisible exporters?

Mr. Mason

Of course I recognise that invisible exports have done extremely well in recent times. However, I know that I shall have to trawl old ground and that the S.E.T. argument will come to the fore. I cannot promise that I shall relieve them of it.

Mr. Blaker

Whatever may be the result of the right hon. Gentleman's forthcoming consideration of this matter, is he not aware that there is already a report, which is now two years old, which makes recommendations for helping the service industries by way of tax, the Queen's Award for Industry and statistics? Could he not get on with some of those recommendations now?

Mr. Mason

I have already read the report and seen the recommendations. I have no doubt that they will be before us when I meet the Committee on Invisible Exports.

Mr. Ridley

Will the right hon. Gentleman accept the advice of the Committee on Invisible Exports and separate the contribution which the private sector has made to net invisible earnings from the burdens imposed by the Government's invisible earnings and thereby show the extraordinary extent to which the City has saved the Government's economic bacon?

Mr. Mason

I would not agree that it is only the City which has saved the country's economic bacon. The hon. Gentleman should be, and no doubt is, aware that there has been much productive enterprise on the shop floor in order to get the visibles off the ground, too. However, I am aware also that the exporters of invisibles feel that there is much mystique in their operations and that they would like to have their image enhanced, and I will look at that, too.

Mr. Barnett

In view of the rapid growth of invisible earnings since the advent of S.E.T., will not my right hon. Friend study whether it has been positively advantageous in this respect?

Mr. Mason

It may well have acted as a spur.

Mr. Maudling

This is a serious point. Is it being argued by the Minister that the result of doing well with invisible exports is to be welcomed by a tax imposed on those who have achieved those invisible exports? S.E.T. is certainly a handicap to invisible exporters. Will not the right hon. Gentleman do something about it?

Mr. Mason

I cannot promise, but I said that I would have to trawl over old ground and this includes S.E.T. Invisible exporters have done remarkably well in spite of it.