HC Deb 15 March 1976 vol 907 cc933-4
26. Mr. Rost

asked the Secretary of State for Trade if he is satisfied that the domestic electrical appliance and television manufacturing industries are maintaining their competitive position in overseas markets and are subjected to fair competition from imported products.

Mr. Deakins

Exports of domestic electrical appliances rose in value in 1975 by a fifth, and probably about held their relative position in overseas markets. Exports of television sets doubled in value and probably improved their share. So far as imports are concerned, we are always ready to consider evidence of unfair competition.

Mr. Rost

Is that not a totally complacent reply, bearing in mind the decline in the electrical appliance and television component industries? To what extent is that due to the Government's imposition of a 25 per cent. VAT rate?

Mr. Deakins

The effect of the imposition of a 25 per cent. VAT rate is a matter for my right hon. Friend the Secretary of State for Industry. However, even before the imposition of that rate our share of world trade in domestic electrical appliances, in terms of exports, had been falling, so there must be other explanations.

Mr. Ioan Evans

Will my hon. Friend consider making representations to the Chancellor of the Exchequer to vary the VAT rate, which is hitting the electronics industry? Will my hon. Friend consider advising consumers to buy British, and the electronics industry to buy British components?

Mr. Deakins

I am sure that my right hon. Friend the Chancellor of the Exchequer will note my hon. Friend's remarks. We naturally hope that wherever possible and practicable British industry will purchase supplies from domestic manufacturers.