HC Deb 06 February 1978 vol 943 cc1009-11
16. Mr. Dykes

asked the Secretary of State for Trade what figure he estimates for the trade deficit with other EEC member States in the second half of 1977 com pared with the first halt and the first and second halves of 1976.

Mr. Meacher

In the four half-year periods beginning with the first half of 1976, our crude trade deficits with the rest of the EEC have been £1,041 million, £1,100 million, £1,017 million and £985 million respectively.

Mr. Dykes

Now that the trend in trade with the EEC is going the other way, will the Minister note that the anti-EEC forces have become silent and we do not hear so much about the persistent uncontrollable deficit within the Community? [HON. MEMBERS: "The hon. Gentleman must be joking."] Does he agree that these figures show that the EEC deficit is declining, just as deficits are declining elsewhere? All this is happening against a background of a higher ratio of trade with other EEC member States.

Mr. Meacher

There has been an improvement. Whether it can be described as more than marginal is a matter of opinion. The size of our trade deficit with the EEC is still about £2 billion a year and there must be a considerable improvement in that figure.

Mr. Wrigglesworth

Does the Minister agree that invisible exports play a very important part in our trade balance with the EEC and with other countries? Does he also agree that supervision of the securities market and other City institutions might play a large part in the balance? Should we not have a debate in the House on new methods of supervising the securities market and other City institutions before any agreement finally is reached between the Department of Trade and the Governor of the Bank of England?

Mr. Meacher

The matter of a debate is for the Leader of the House. This issue is certainly an important factor in trade with the EEC and it is worth worrying about that over the past four years a surplus on invisible trade with the EEC of £374 million has turned into a deficit of £160 million.

Mr. Hooley

Will the Minister agree that in so far as these deficits occur—running at £1½ billion on manufactures with other EEC countries—we are using North Sea oil revenues to subsidise and develop the manufacturing industries of our major competitors?

Mr. Meacher

It would be foolish to believe that if this country were to leave the EEC tomorrow this large deficit would disappear. Any change would be a matter for conjecture. We also have a large deficit with the rest of the world—£1.6 billion last year. My hon. Friend's argument would apply to that as well.