HC Deb 10 January 1977 vol 923 cc1034-6
12. Mr. Skinner

asked the Secretary of State for Trade what, at the latest date, are the figures for trade, both imports and exports, with EEC countries.

Mr. Meacher

In the first three quarters of 1976, United Kingdom exports to the rest of the EEC were valued at £6,091 million on a balance of payments basis. The value of United Kingdom imports from the Community in the same period was £7,584 million.

Mr. Skinner

Is it not fair to say that the current deficit is about £2,300 million per annum, which is even worse when taking into account the fact that no benefits have arisen out of the so-called devaluation of the pound? Does not my hon. Friend agree that, far from the 55 million people of the United Kingdom benefiting from our membership of the Common Market, the only people who have benefited have been those like the former Prime Minister, who got a £40,000 bouquet, and Roy Jenkins, who is new on £1,000 a week?

Mr. Meacher

My hon. Friend is about right in the size of the deficit, which is running at slightly over £2 billion a year. He is not entirely right in saying that there has been no improvement or that there is no prospect of some improvement. In the first three quarters of last year, our exports to the other EEC countries rose faster than their exports to us Consequently our deficit with them reduced by about £300 million while our deficit with the rest of the world worsened by about £500 million. The question is how we can improve the situation further. That depends on the industrial strategy, on accelerated investment and on other matters which are really the responsibility of the Department of Industry.

Mr. Adley

Is not the reason why other countries of the EEC are doing well and we are doing badly simply a matter of productivity and taxation? When will the Government stop blaming the rest of the world for our faults, reduce company taxation and reintroduce incentives to people to work harder?

Mr. Meacher

When the Conservative Government reduced taxation in 1971, 1972 and 1973, the deficit with the rest of the EEC rose even faster than it has done in the last two years. Our productivity is very comparable at present with the productivity of other EEC countries, but it is only in the last trade cycle that we have equalled their growth rate in productivity. In previous cycles, we were significantly below.

Mr. Heffer

Is it not clear that the country was misled in the referendum campaign by hon. Members on both sides of the House who said that if we remained in the EEC there would be jobs for the boys, higher investment and greater opportunities for all? Has not that claim proved to have been an absolute lie, with our people not better off but worse off because of our continued membership?

Mr. Meacher

I am sure that every hon. Member will draw his own conclusions in the light of the facts to which my hon. Friend has referred.