HC Deb 22 November 1976 vol 919 cc1852-3
2. Mr. Skinner

asked the Secretary of State for Trade whether he is still satisfied with the deficit on Great Britain's trade with other EEC countries; and if he will make a statement.

The Secretary of State for Trade (Mr. Edmund Dell)

So far this year, there has been an increase of 42 per cent. in the value of our exports to other EEC countries and a 28 per cent. increase in imports compared with the corresponding period in 1975. I welcome the resulting improvement in our still large trade deficit with the EEC.

Mr. Skinner

Does it not need to be mentioned that, according to the most recent figures, we are in deficit with other Common Market countries to the tune of £2,300 million and that the amount by which we are supposed to be benefiting from the common agricultural policy and the green pound pales into insignificance compared with that very large deficit? Does not my right hon. Friend agree that now, 30 years after the war, we are in the financial grip of Western Germany and the only answer to the problem is to get out of the Common Market, and do it quickly?

Mr. Dell

I do not agree with my hon. Friend on that. It is true that we have a large deficit with the European Community, but I am sure my hon. Friend will welcome the fact that the deficit has improved slightly so far this year and has improved to an even greater extent in respect of manufacturing products.

Mr. Powell

Will the right hon. Gentleman explain to the hon. Member for Bolsover (Mr. Skinner) that Great Britain has no trade deficit?

Mr. Dell

If I were to follow the right hon. Gentleman's reasoning it would take some time, and perhaps Question Time would be better used in some other way.

Mr. Watkinson

Does my right hon. Friend agree that under the Treaty of Rome, Articles 104 and 108, we are entitled to protect our balance of payments? In those circumstances, is it not necessary for us now seriously to consider controlling our imports from the Common Market?

Mr. Dell

As my hon. Friend says, there are such provisions within the Treaty of Rome. On the other hand, my hon. Friend should remember that there are several countries within the Community which also have large balance of payments deficits and high unemployment. For example, I do not know whether my hon. Friend saw details of the French trade deficit for October.

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