HC Deb 18 October 1976 vol 917 cc918-21
2. Mrs. Wise

asked the Secretary of State for Trade what is his policy on imports.

Mr. Dell

The Government's policy on imports remains as described by my right hon. Friend the Chancellor of the Exchequer in his Budget Statement on 6th April.

Mrs. Wise

I think that in view of that answer from my right hon. Friend I ought to have asked "what is his policy on imports, if any". I submit to him that the situation in which we wring our hands—[Interruption.]

Mr. Speaker

Order. I think that the House was trying to help me. The hon. Lady must ask a question.

Mrs. Wise

Is my right hon. Friend aware that one should have asked "what is his policy on imports, if any"? Is he aware that we must do more than wring our hands in a situation in which the volume of imports increased in the last quarter by 9½ per cent.? This House is constantly being told that we cannot afford things. Will my right hon. Friend accept that we can no longer afford a totally unplanned attitude to trade?

Mr. Dell

I think that my hon. Friend was referring to the September trade figures and not to those for the last quarter. We control imports in a number of cases where they are causing disruption to particular industries. I must remind my hon. Friend that this country depends on the export of manufactured goods and that we export far more manufactured goods than we import. It would be the height of absurdity to put such exports, upon which a great deal of employment is based, at peril by unreasonable action.

Mr. Higgins

Is the Secretary of State aware that the Prime Minister's response on this subject last week was dangerously ambiguous and that there is fear that the Government will be pushed into protectionism with all the consequences that that would entail by retaliation, with the prospect of going back to a situation like that of the 1930s? Does he accept that the crucial distinction is between fair and unfair competition from imports and that this question was fudged in the TUC-CBI paper on the subject? If that is so, will he accept that there is no case for restricting fair competiiton from imports? It is absolutely essential to take more urgent and faster action than the right hon. Gentleman is doing concerning dumping on the United Kingdom market, particularly in regard to COMECON countries.

Mr. Dell

The Prime Minister's response was not ambiguous. The Government have repeatedly made it clear that they are against general import controls. We assess the unfairness of particular competition within the framework of the dumping legislation. When the hon. Gentleman says that we need to take faster action in respect of dumping, I take it that he is not expecting us to return to the action which was characteristic under his Government. We are taking very much faster and more effective action in that field, but protection against dumping is only part of the action that one needs to take. There are cases, and many examples could be given, in which we have felt it right to take certain restrictive action, but it would be most unwise to take restrictive action in a form which would bring about retaliation against our exports.

Mr. Powell

Is the right hon. Gentleman aware that Britain's trade deficit is merely a concomitant of her surplus on capital account? As long as the Governent are committed to borrowing enormous sums of money, whatever the rest of the country does, there is bound to be a deficit on trade.

Mr. Dell

The right hon. Gentleman will be aware that there are some difficulties about ensuring the capital inflow. It is important to get our trade balance into better balance.

Mr. John Garrett

Is my right hon. Friend aware that footwear is the hardest hit industry with regard to unfair prices, dumping and subsidised imports? No less than 40 per cent. of the £100 million worth of foreign footwear has been shown to be dumped or subsidised, and the measures taken by my right hon. Friend's Department to provide protection are wholly inadequate to cope with the continuing decline of this industry in the face of such imports.

Mr. Dell

My hon. Friend will be aware that there are restrictions on the imports of footwear into this country. Anti-dumping action has been taken and further dumping action is being considered. We are also considering the specific problem of sandals and we are doing a great deal to assist the footwear industry at this time. I have been in discussion with the industry more than once, and I shall take whatever action I can within the law to help it.

Mr. Forman

Does the Secretary of State accept that we on this side of the House would regard the introduction of fully-fledged import controls as an action of despair? Nevertheless, there is a strong case in certain industries for much tighter voluntary agreements in respect of some of the low-cost products being dumped in this country, particularly in the case of electronics and electronic components. Will the Minister give an undertaking to take early action on this point?

Mr. Dell

As the hon. Gentleman knows, a wide range of voluntary agreements have been negotiated by us or by industries with the particular suppliers. The vast majority of what I would describe as low-cost imports are now subject to controls of one kind or another. We have been in close consultation with the electronics industry over the last few weeks. I hope that there will now be inter-industry discussions on this point. Meanwhile, we have established an agreement in respect of 1976 and also, in the case of Taiwan, we have an agreement covering not only the remainder of 1976 but 1977 as well.

Mr. Heffer

Will my right hon. Friend explain why this Government are not as bold as the previous Labour Government when import deposits were applied up to 50 per cent.? That would reduce the Government's borrowing requirement. Why are the Government acting like King Canute in the face of an overwhelming case that some form of import controls must be brought in at the earliest moment?

Mr. Dell

I would say to my hon. Friend that it might be possible to protect the home market. What is impossible, if we invite retaliation, is to protect our exports. A great deal of employment in this country is dependent on those exports, and the industries concerned are our most efficient and rapidly expanding industries. In regard to import deposits, my hon. Friend will have noticed in respect of the scheme for 1968–70 that the trade effect was very small. If import deposits have any effect at all, it is of a financial character which leads to foreigners helping to finance our balance of payments deficit and it has certain internal monetary effects. That being the case, I suggest that my hon. Friend puts his question to the Chancellor of the Exchequer.