§ 16. Mr. Hooleyasked the Chancellor of the Exchequer what is his current estimate of the out-turn on the balance of payments current account for the year 1977.
§ Mr. Robert SheldonThe Financial Statement and Budget Report this year forecast that the current account would show a deficit of half a billion pounds in 1977. This forecast now appears likely to be too pessimistic.
§ Mr. HooleyIs my right hon. Friend aware that I welcome his statement that the forecast is too pessimistic? Does he agree that it is important to take advantage of the betterment of the balance of payments position to reduce interest rates still further and to push more money into industrial investment through the National Enterprise Board?
§ Mr. SheldonI am grateful for what my hon. Friend says about the improved position of the balance of payments. I note his comments on interest rates. He will be aware of the considerable fall in interest rates that has taken place over the past few months. Let us hope that that will lead to the sort of investment that I think he foresees.
§ Mr. GouldWill my right hon. Friend say how much of the improvement will be accounted for by an increase in our share of world trade and manufactures?
§ Mr. SheldonThese matters are always hard to predict. There is no question but that there has been an improvement not only in our exports but in the terms of trade and in our invisible earnings. All these factors have contributed to the considerable improvement in the overall position of the balance of payments to 1414 which my hon. Friend the Member for Sheffield, Heeley (Mr. Hooley) referred.
§ Mr. Peter BottomleyWill the right hon. Gentleman confirm that during the past year there has been a great improvement in our trading position with the rest of the EEC?
§ Mr. SheldonCertainly there has been an improvement in our exports to the EEC in comparison with last year's figures. This is an encouraging trend that we welcome and hope will continue.