HC Deb 15 June 1971 vol 819 cc214-5
11. Mr. Madel

asked the Chancellor of the Exchequer whether the United Kingdom's terms of trade will, in his latest estimation, show a net favourable movement or a net adverse change in 1971.

Mr. Maurice Macmillan

I see no reason to alter the view expressed on page 11 of the Budget Report, that there should be some further improvement in the terms of trade in 1971.

Mr. Madel

Does the Minister feel that further reflation is now necessary to get an even bigger improvement?

Mr. Macmillan

That point has been amply covered by what my right hon. Friend has said this afternoon, with which, of course, I entirely agree.

Mr. Taverne

Will the Chief Secretary say whether or not he welcomes this development?

Mr. Macmillan

There are certain obvious advantages in the improvement of the terms of trade. Reaching behind what I think the right hon. Gentleman is getting at, any improvement in the terms of trade is a result of continuing cost inflation.