16 Mr Marowasked the Secretary of State for Trade what has been the effect on trade in manufactures of changes in franc and deutschemark parities with sterling since 1 January.
§ Mr. BiffenIt is not possible to make a worthwhile estimate on the basis of available information.
§ Mr. MarlowDoes my right hon. Friend agree that some time ago, when the mark and franc were strong, relatively cheap British labour costs allowed us to compete with the more efficient French and German industries, particularly the engineering industries? Since the pound has become stronger against the mark and franc we have not been able to compete so well, with rather harmful effects on large sections of our engineering industry. Does he agree that we have lost many jobs and that, unless something is done soon, other jobs will be lost? What does my right hon. Friend intend to do about it?
§ Mr. BiffenMy hon. Friend's remarks underline the importance of improving the domestic cost structure of British industry to enable it to compete in both those markets. I hope that my hon. Friend will not be too pessimistic because it seems to me that the forces which are driving the franc down should, on the whole, help British business.
§ Mr. SpearingHave not the recent increases in the £ sterling more than outweighed the advantages of a reduction in or disappearance of tariffs consequent on our joining the EEC?
§ Mr. BiffenThat is probably true in statistical terms. However, the hon. Gentleman is a fair controversialist in these matters and he will agree that the final, balanced judgment must take into account factors other than the mere two that he mentions.
§ Sir Anthony MeyerIs it not the case that fluctuations in the exchange rate have a short-term effect whereas the advantages of securing tariff-free entrance to the European Common Market are permanent?
§ Mr. BiffenYes.