HC Deb 10 January 1977 vol 923 cc1037-9
18. Mr. Forman

asked the Secretary of State for Trade if he will set out the broad lines of the Government's foreign trade policy.

Mr. Meacher

Our general policy is to work for a balanced expansion of world trade.

Mr. Forman

If that is a succinct summary of the Government's foreign trade policy, why has our country's trade been in substantial deficit on current account ever since February 1974, and what do the Government intend to do to remedy the situation beyond what has already been done?

Mr. Meacher

The United Kingdom was, of course, in substantial deficit on current account well before February 1974. The last time we were in substantial surplus was as a result of the policies of the previous Labour Government. As regards action by which we hope that we shall be able to secure a surplus, I am sure that the hon. Gentleman will have seen the forecast of perhaps the chief independent economic forecasting agency in the United Kingdom, the National Institute of Economic and Social Research, suggesting that this year we might have a surplus—possibly the forecast was slightly optimistic—of nearly £5 billion.

Mr. Emery

May I wish you a happy new year, Mr. Speaker? May I ask the Minister whether, in examining the Government's foreign trade policy, he will look at the incorrect gearing of credits to the amount of credit taken up, as was so evident from his reply relating to the credit outstanding to the Soviet Union. It surely must be wrong that 72 per cent. of that credit is still outstanding when the money allocated could be used to give credits for other foreign trade deals in other parts of the world.

Mr. Meacher

We had assurances last year from Mr. Gromyko, which were endorsed by Academician Kirillin and also by the Deputy Trade Minister, Mr. Komarov, on my recent Moscow visit, that the Russians fully intend to take up the credits in the near future.

Mr. Jay

Is my hon. Friend aware that our present visible trade deficit with the EEC accounts for the whole of our current trade deficit with the rest of the world?

Mr. Meacher

Yes.