§ 15. Mr. Ridleyasked the Secretary of State for Trade what estimate he has made of the increase in visible trade, both in and out of the United Kingdom, arising out of the activities of the Price Commission, since November 1972 to the present date.
§ Mr. DeakinsNo estimate has been made but I think it unlikely that the activities of the Price Commission have had more than a marginal influence.
§ Mr. RidleySince the price of many goods is much higher on the Continent, is it not obvious that price control is causing a large diversion abroad of goods which then have to be bought back at higher prices? Why do the Government not realise that there cannot be price control of industrial materials in a world which is free and where goods can move freely? Why do they not realise that in the end we have to live in the; world market place and not in a sheltered little island, as the hon. Gentleman and his hon. Friends seem to think?
§ Mr. DeakinsIt will be difficult, if not impossible, to prove one way or the other whether what the hon. Gentleman asserts is true. The strong rise in demand in 1973 and three-day working in part of 1974 have had such a large impact on the levels of trade that they mask the influence and significance of the small factors which he has mentioned.
§ Mr. Bruce-GardyneIs the hon. Gentleman really asking us to believe—to take 1217 one example—that the increase of two thirds in the volume of imports of excavating machinery last year and the increase of one third in the volume of exports of excavating machinery last year had nothing to do with the distortion created by price control?
§ Mr. DeakinsI thought it was generally accepted that an expansion of international trade is a two-way process and that one country does not exclusively export goods of one type and import goods of another type. We export motor cars but we also import motor cars. We export excavators and, equally, we import excavating equipment. I see no reason to be concerned about the figures the hon. Gentleman quotes.