HC Deb 14 October 1976 vol 917 cc611-3
6. Mr. McCrindle

asked the Chancellor of the Exchequer what percentage of the United Kingdom's total imports of food, drink and tobacco is met by earnings on invisible exports.

The Minister of State, Treasury (Mr. Denzil Davies)

Over the last three years gross invisible earnings were between two and a half and three times the value of the United Kingdom's imports of food, beverages and tobacco.

Mr. McCrindle

Do not these figures reveal the acute and continuing dependence of this country for its standard of living on the success of invisible exports? Does the Minister think that threats of nationalisation of all the sources of these invisible earnings will help in any way? Is it not perfectly clear that if they were nationalised a great deal of Britain's invisible trade would go elsewhere?

Mr. Davies

The figures show that the City makes some contribution, as indeed do all the other industries, to the balance of payments. I should point out to the hon. Gentleman that insurance, for instance, in which I think he has a particular interest, contributes 4.1 per cent. of this total and banking contributes 6.9 per cent. of the total. The City should stop scratching itself on the back and perhaps consider more whether it has made a sufficient contribution to domestic British industry.

Mr. Welsh

Will the hon. Gentleman give an equivalent figure for Scotland? Scotland is basically self-sufficient in foodstuffs and is a massive exporter of food and drink, all of which will give an independent Scotland a healthy balance of payments situation which is undreamed of at present by the United Kingdom.

Mr. Davies

I would not agree with much of what the hon. Gentleman has said. The figures are United Kingdom figures and are based on a United Kingdom balance of payments.

Mr. Nott

The figures that the Minister of State quoted simply cannot be right. Is he referring to gross figures or net figures? He surely cannot be referring to the gross figure of invisible earnings in the total balance of payments. The figures of 6 per cent. and 4 per cent. cannot be right if these are gross figures being compared with the gross figures in the total balance of payments figures.

Mr. Davies

They are percentages of the gross figures.

Mr. McCrindle

On a point of order, Mr. Speaker. In view of the unsatisfactory nature of that reply, I shall seek to raise the matter on the Adjournment at the earliest possible moment.