HC Deb 29 January 1981 vol 997 cc1068-70
20. Mr. Adley

asked the Chancellor of the Exchequer if he is satisfied with the level of tax incentives available to United Kingdom exporters; and if he will make a statement.

Mr. Lawson

A specific tax relief for exporters would be contrary to our international obligations, but, of course, United Kingdom residents working abroad and thereby contributing to our invisible exports may be entitled to some relief, depending on the length of their absence.

Mr. Adley

Will my right hon. Friend therefore seek to discuss with his Community partners a method whereby such a tax would be in order in all countries, so that all countries in the EEC might gain equal benefit from all their exports to countries outside the EEC?

Mr. Lawson

Quite apart from the fact that a proposal of the kind advanced by my hon. Friend would be in breach of international obligations, not only those imposed by the EEC, but those of GATT, and therefore considerable renegotiation would be required, it is not clear to me that distortions of this kind would be to anybody's advantage. It is far better in matters of taxation to give general tax incentives, and indeed that will be the policy of the Government throughout this Parliament.

Mr. Newens

Does the right hon. Gentleman agree that British exporters face very serious disadvantages, particularly those that flow from the overvaluation of the pound? What is he prepared to do to assist people who face difficulties of that kind?

Mr. Lawson

The hon. Gentleman will have to wait for the Chancellor's Budget Statement to see how he is taking into account, among other things, the present condition of industry.

Mr. Cryer

Is it not a fact that a country such as Ireland, for instance, has inbuilt tax advantages within the EEC for its exporters? Is not that one of the inbuilt disadvantages of our membership of the EEC, which we cannot possibly get round because Ireland has a fundamental right to give those tax advantages?

Hon. Members

Hear, hear.

Mr. Lawson

I am afraid that I was unable to hear that question, owing to the burst of enthusiasm for the deputy Leader of the Opposition for the time being.

Later—

Mr. Cryer

On a point of order, Mr. Speaker. You may recall, Mr. Speaker, that following the answer to question 20 you called me to ask a supplementary question and the Minister said that he could not hear because of the noise—those were his words—made by the public school hooligans on the Conservative Benches and those are mine to describe the objects on the Government Benches. I am not going back over the same ground now, Mr. Speaker, because that would be difficult, but I suggest that when Conservative Members can shout down an hon. Member asking a supplementary question, which means that the Minister does not have to answer, it is a poor day for Parliament. I urge you, Mr. Speaker, that in future you give time for questions—

Mr. Speaker

Order. I agree with the hon. Member for Keighley (Mr. Cryer) that there is a lot of noise when the Minister to whom he has referred replies. Equally, there is a lot of noise when the Prime Minister is answering questions. If hon. Members could read the correspondence that I receive from throughout the country when our proceedings have been broadcast they would share the opinion that we would be wiser to listen to answers as well as questions.

Mr. Dormand

On a point of order, Mr. Speaker.

Mr. Speaker

Order. In any case, I do not take points of order from the Gangway.

Mr. Dormand

I now apologise, Mr. Speaker. May I raise my point of order? I understand that my question—No. 11—was taken with an earlier one. It is the normal courtesy, and indeed the normal procedure, for the Department to notify the hon. Member concerned in such a case. Can the Chancellor tell me why I was not so informed? As you, Mr. Speaker, will know, I am a regular attender at Question Time and I am always in good time. Will the right hon. and learned Gentleman also use whatever influence he has to ensure that next time he answers questions I have question 1?

Mr. Speaker

Order. I usually take points of order about Question Time at the end of Question Time, because what has just happened has taken one minute out of Prime Minister's Question Time.