HC Deb 22 November 1976 vol 919 cc1872-4
20. Mr. Blaker

asked the Secretary of State for Trade what amount of the £950 million credit offered to the Union of Soviet Socialist Republics has been taken up at the latest available date.

Mr. Meacher

The total value of contracts placed under the agreement to date is approximately £42 million. Discussions are continuing on further substantial contracts between United Kingdom exporters and buyers in the USSR.

Mr. Blaker

Is it not an extraordinary situation when we are offering to lend money for the building of factories in Russia at rates of interest much lower than those which have to be paid by our own industry if it is building factories in Britain, all this being done at a cost to the British taxpayer that the Government refuse to disclose?

Mr. Meacher

If exporters are to get a proper share of this important and expanding market, they have to offer credit and interest rates on a competitive basis. The conditions of the framework for our trade with the USSR were settled not by us but by our competitors. The hon. Gentleman will have to make up his mind whether he is saying to British industry—it will not agree with him—that he does not wish to see any trade with the USSR. As regards domestic industry, it is the case that if money has to be borrowed it has to be at the going interest rate. However, there are wide-ranging grants to assist industry to get money for desired investment at cheaper rates.

Mr. Greville Janner

What is the current state of the balance of trade between Britain and the USSR?

Mr. Meacher

We are in substantial deficit.

Mr. Neubert

How much of the trade between the United Kingdom and the USSR is carried in British ships? What progress is the Department making on its own, or in concert with other European countries, to combat the urgent threat that is posed by cut-price Soviet shipping?

Mr. Meacher

I cannot give the hon. Gentleman the figures without notice, but I shall write to him on this matter.

24. Mr. Ridley

asked the Secretary of State for Trade what is the total amount of credits outstanding to the Union of Soviet Socialist Republics under the auspices of ECGD.

Mr. Meacher

The total amount of credit outstanding is not confined to contracts placed under the £950 million credit agreement. However, for commercial reasons, it has been the practice of successive Administrations not to disclose figures of ECGD's cover in respect of individual markets.

Mr. Ridley

Since the Government seem determined to conceal this figure, may I tell the Minister that my estimate is that it has now reached £1,200 million? Why do the Government insist on investing more in Russian industry than they do in British industry when they obtain no dividends from Soviet investment but only low-priced imports?

Mr. Meacher

We are in no way investing specially in the Soviet market. We are merely ensuring that British exporters who wish to take advantage of the substantially expanding Soviet market should be able to use the facilities available to them in that market as well as in other markets on a competitive basis.

Mr. Molloy

Is my hon. Friend aware that there are many manufacturers who welcome the Government's endeavours because they will enable them to increase their trade with the Soviet Union, which is a good thing for our industry? Is he not aware that the anger among Conservatives is that such sensible and intelligent behaviour is in direct contrast to the attitude of the Opposition, and especially of the Leader of the Opposition, who wishes to abolish any talk-in with the Soviet Union, wants to see the end of detente and wishes to get down to having a first-class war?

Mr. Meacher

I am well aware of the political myopia of the Opposition, particularly their Leader, with regard to the Soviet Union.