HC Deb 03 December 1973 vol 865 cc904-6
20. Mrs. Renée Short

asked the Secretary of State for Trade and Industry what is the latest balance of trade deficit for the current year.

Sir G. Howe

In the first 10 months of this year the current account in goods, services and other transactions is estimated to have been in deficit by about £950 million.

Mrs. Short

Does not the right hon. and learned Gentleman think that this is an absolutely disgraceful situation? Does he recall the political mileage made by his right hon. Friend just before the last General Election, when the deficit that month was £31 million? In October the deficit was almost 10 times that figure. Is it not time that the right hon. and learned Gentleman got a grip on the situation and urged his right hon. Friend to do the same, to control the import of unnecessary raw materials and semi-manufactured goods which we could produce ourselves and generally to put some back into promoting British exports?

Sir G. Howe

The hon. Lady must appreciate that my right hon. Friend and, indeed, many others have been devoting a great deal of effort to the promotion of British exports. The volume of our exports has increased faster than the volume of our imports. They have been increasing at a record rate. To suggest, as the hon. Lady does, that it would be sensible to cut down on what she describes as the import of unnecessary raw materials would be to deprive British industry of the raw materials which it manifestly needs to expand its exports.

Mrs. Short

Nonsense.

Mr. Edward Taylor

While I am sure that we all hope and expect that the postion will improve, may I ask how much of the £950 million deficit was in respect of trade with the EEC?

Sir G. Howe

The volume of our exports to the EEC has been expanding faster than the average of our exports—faster, indeed, than the volume of our exports to Western Europe as a whole. Imports from that area, as from others, have been increasing as well.

Mr. Benn

In the light of the figures which the Minister has given and against the background of a more difficult economic situation, brought about partly by the energy crisis, does the Secretary of State for Trade and Industry still adhere to his view that 1974 will be a year of rapid, go-ahead economic expansion in this country?

Sir G. Howe

The year 1974 should be a year in which there will need to be a continued emphasis on the expansion of our export trade. The prospects for such expansion should remain good, and they remain as important—indeed, more important—as when my right hon. Friend last spoke about them.