HC Deb 13 March 1978 vol 946 cc21-3
16. Mr. Neubert

asked the Secretary of State for Trade what is his revised estimate of the balance of trade in 1978; and whether he will make a statement.

Mr. Meacher

I would expect there to be a further significant improvement in our visible balance in 1978, following the improvement of £1,900 million in 1977.

Mr. Neubert

But do not the recently revised figures for the last quarter of 1977 indicate a danger of our taking for granted our invisible earnings, particularly from tourism? Does the hon. Gentleman agree that a tourist tax would be likely to discourage earnings from that source?

Mr. Meacher

I am concerned about the drop—a small drop—in the level of increase of our tourism earnings in the fourth quarter of 1977. The hon. Gentleman referred to a tourism tax. No Government spokesman has suggested that there is likely to be such a special tax, especially as tourists from overseas already spend an estimated £100 million a year in VAT, tobacco and liquor.

Mr. Terry Walker

Does my hon. Friend recall that last week I raised with the Department a matter raised with me by a company in my constituency which had £340,000 worth of exports held back in the Mersey because two ships were unloading cars from Japan? That is an example of exports being held back because of exports from countries such as Japan.

Mr. Meacher

My hon. Friend may be right in the case that he mentions, but it is a matter for the management of the docks rather than for a change in Government policy.

Mr. Nott

Is the Under-Secretary aware that, in the absence of his right hon. Friend the Secretary of State, this Question Time has been about protectionism and very little else? The hon. Gentleman said earlier—I do not know whether he is aware of this—"Full employment is not compatible with an open trading system."

Mr. Rooker

He did not.

Mr. Nott

That is precisely what the Minister said. He will have a chance to correct it. Does the Minister think that full employment is compatible with an increasingly protectionist trading system? We want to know which side the Department of Trade is on.

Mr. Meacher

We certainly know which side the Conservative Party is on. It is for an untrammelled increase in imports irrespective of the consequences for British industry. All that the Government have said is that we need a balance between complete openness and protectionism which will maximise the benefits for the United Kingdom, which includes benefits for foreign exporters to us.