HC Deb 06 February 1978 vol 943 cc1003-5
13. Mr. Adley

asked the Secretary of State for Trade what steps he is taking to fulfil the Prime Minister's wish to see invisible trade prospects improved.

Mr. Dell

My Department offers a wide range of services to invisible exporters and is actively assisting the invisibles sector in identifying and pursung opportunities for improving overseas earnings.

Mr. Adley

Has the Secretary of State noticed that most of the service industries which make such a good contribution to the British balance of payments are in the private sector, demand little by way of Government assistance, and are not very heavily trade unionised? Will he tell us what conclusion he draws from that? Does he agree that what those companies need is a fair deal from the Treasury over taxation policies vis-à-vis our European competitors?

Mr. Dell

I note that those parts of the economy are in the private sector. I am delighted that they are doing well and are increasing their earnings. No doubt the hon. Gentleman's remarks about the Treasury will be conveyed to it. I wish to give the invisible earnings sector of our economy every encouragement. I think that we are now doing so.

Mr. Skinner

Will my right hon. Friend confirm that for tourism to succeed it needs hotels that are subsidised to some extent by Government money—both now and in the past—and that most tourists come to see the public institutions which are catered for and financed by the taxpayer?

Mr. Dell

I think that tourists come to this country for many reasons. They come to see the beauty of the country and to see the many buildings in the public and private sectors. I shall encourage them to continue to do so.

Mr. Nott

Is the right hon. Gentleman aware that our shipping industry is probably amongst the largest contributors to our invisible balance of payments? Does he think that to give ships away to COMECON countries and to persuade India and other countries to take ships under our aid programme will help the invisible earnings of this country in future years?

Mr. Dell

The hon. Gentleman's supplementary question is again based on the assumption that if we do not build these ships they will not be built. That is not the position. It is a factor in world shipping—a factor of which we shall have to take increasing note—that many developing countries are building their own fleets. Unfortunately, most of them are building their fleets not in this country but in other developing countries as well as in their own shipbuilding yards. That is a factor of competition of which we shall have to take account. The question of the relationship between the developing world and the more developed sections of the developing world must occupy our thoughts. Indeed, it is part of the negotiations in other respects which will take place in the multilateral trade negotiations. There is no chance of this development being avoided.