HC Deb 18 October 1976 vol 917 cc928-9
7. Mr. Marten

asked the Secretary of State for Trade what is now the visible trade deficit with the EEC on a balance of payments basis for the last 12 months.

Mr. Dell

In the 12 months ended June 1976, the latest period for which such information is available, the deficit was £2,237 million.

Mr. Marten

I agree that exports to the Common Market have risen, as they have risen to almost all areas of the world, especially Australia, New Zealand and South Africa, but is it not true that the deficit is greater than our deficit with all the rest of the world? Is that what was meant by the "benefits of a wider home market"?

Mr. Dell

As the hon. Gentleman has said, our exports to the European Community have risen, as have our exports to all other parts of the world. It is also true that the deficit is greater than with the rest of the world. A large part of the deficit consists of imports of food and fuel. The hon. Gentleman will be pleased to hear that our balance of payments with the European Community has been on an improving trend for some time. I agree that I should like to see it improved faster, but it is on an improving trend. I am sure the hon. Gentleman will accept that the test of competitiveness is whether we can compete in Europe. If we can compete in Europe, we can compete anywhere in the world.

Mr. Ronald Atkins

Does my right hon. Friend recall that the majority of right hon. and hon. Members on both Front Benches forecast that if we joined the Common Market our financial and trade problems would disappear? What went wrong?

Mr. Dell

There are always disagreements during discussions of this sort about exactly what right hon. and hon. Members had forecast. The truth is that in manufactured goods our deficit with the European Community is far smaller than the total figures that are bandied around. The total figures contain for the most part imports of food and fuels. Our exports to the European Community show that we can increasingly compete in manufactured goods, and that is a matter of great importance.

Mr. Ronald Bell

Will the Secretary of State say whether this is what was meant by the phrase used at the time of our entry into the EEC "We have got to get in to get on"?

Mr. Dell

I wait for the hon. and learned Gentleman to welcome the fact that we are getting on with our exports within the European Community. He may find that very satisfactory.