HC Deb 29 June 1981 vol 7 cc561-2
4 Mr. Butcher

asked the Secretary of State for Trade what short-term changes he anticipates in the pattern of British trade, which may arise from recent fluctuations in the value of the £ sterling against the dollar.

12 Mr. Kenneth Carlisle

asked the Secretary of State for Trade what is the estimated effect of the recent fall in the value of the £ sterling on the volume of United Kingdom exports; and whether he will make a statement.

Mr. Biffen

It is not practicable to evaluate the effects of particular parity changes on trade flows, although some broad estimates have been made of the consequences for the volume of United Kingdom exports of changes in sterling's effective parity against all our major competitors.

Mr. Butcher

Given sterling's vulnerability to short-term fluctuations, does my right hon. Friend agree that the best policy for British exporters is to continue to concentrate on reduced costs and increased efficiency and, wherever possible, to go for higher added value?

Mr. Biffen

Most certainly.

Mr. Carlisle

Although the recent fall in the value of the pound will increase the margins on exports, does my right hon. Friend agree that our remarkable export achievement when the pound was high demonstrates that attention to quality, delivery on time and customer service are just as important, if not more so, as the level of the pound in achieving export success?

Mr. Biffen

I agree with my hon. Friend. The latest surveys undertaken by both the CBI and the Financial Times suggest that export performance is holding up remarkably well.

Mr. Beaumont-Dark

I accept that efficiency is important. Does my right hon. Friend agree that one of the great problems that has to be faced is the extreme volatility of sterling? Does not a move of 30 per cent. in a matter of months cause great problems for industry? Will the Government consider the EMS as a means of getting some stability into foreign exchange?

Mr. Biffen

I am happy to say that the EMS is a matter for my right hon. and leamed Friend the Chancellor of the Exchequer.