HC Deb 05 July 1973 vol 859 cc703-4
6. Mr. James Hamilton

asked the Chancellor of the Exchequer if he is satisfied with his policy so far as its effect on the national trade figures is concerned; and if he will make a statement.

The Chancellor of the Exchequer (Mr. Anthony Barber)

Yes, Sir, I think it is sensible to give maximum priority to economic growth, consistent with the achievement of an adequate trade balance in the medium term.

Mr. Hamilton

Does the Chancellor concede that at the present rate we could easily have a trade deficit of £1,800 million? If that is so, we are running into serious difficulties, and the so-called boom, which has not yet reached Scotland, will become a disaster over the whole country.

Mr. Barber

I do not accept the figures given by the hon. Gentleman. I make no apology for using the current account surplus to increase output and employment and to raise the living standards of the British people. I hope that the one thing that no hon. Member wants to do is to return to the economic stagnation that we had under the Labour Government.

Mr. Marten

Why has the rate of increase in our exports since we joined the Common Market fallen behind the rate of increase in our exports to Japan and America?

Mr. Barber

There are obviously many factors involved but I do not think anybody looking at the matter objectively expected us to achieve our full potential of exports to the EEC within only a few months of joining.

Mr. Jay

We are now running the biggest balance of payments deficit since the war, even allowing for the invisibles surplus. How does the Chancellor propose to finance this deficit?

Mr. Barber

I would have thought that the right hon. Gentleman, with his experience as President of the Board of Trade, would have seen advantage for this country in the fact that during the first five months of this year our exports have been increasing, in volume terms, twice as fast as our imports.

Mr. Healey

Since the Chancellor refuses to answer the question by my right hon. Friend will he answer one from me? Will it remain his policy to finance the deficit by borrowing at second hand from foreigners through the public authorities?

Mr. Barber

If he looked at the level of our reserves and then took account of the amount that has been borrowed by public authorities, which is a reasonable thing to do, the right hon. Gentleman, if he wished to be objective and to portray the facts, would admit that this is not a significant factor.