§ 2. Mr. Adleyasked the Secretary of State for Trade if he is satisfied with the current levels of imports and exports; and if he will make a statement.
§ The Secretary of State for Trade (Mr. John Biffen)Our current trade position is strong. This reflects in no small way the fine achievements of our exporters.
§ Mr. AdleyDoes my right hon. Friend agree that the corporate public wailing of the CBI seems to be in marked contrast to the privately expressed views of many of its members, huge numbers of whom are importers of raw materials and who find great benefit in a strong pound? Is it not strange, since the Labour Party won the 1964 election on the basis of wailing comments about an £800 million deficit, that we never hear anything from it about the position in January when our balance of payments surplus was, I think, £957 million?
§ Mr. BiffenI am sure that the Labour Party will use this question as the occasion to join my hon. Friend in congratulating our exporters on their magnificent performance.
My hon. Friend referred to the strong pound. It undoubtedly has advantages for the purchase of raw materials, but it would be wise to bear in mind that it has an impact on export performance generally.
Mr. J. Enoch PowellIs there any sound economic reason for our seeking now to increase further the surplus on our balance of trade?
§ Mr. BiffenI would not have thought so.
§ Mr. NeubertCan my right hon. Friend offer a prospect of action on the problem of the importation of cut-price pianos which have been brought in from East Germany and Poland at commercially unreal prices in an attempt, presumably, to earn hard currency in the West?
§ Mr. BiffenI believe that the matter is now before the European Community.
§ Mr. John SmithIs the Minister aware that exporters deserve congratulation, not only on their achievements, but because they are battling against the Government's economic policy and the over-valued pound? Will he say clearly whether the Government want the pound to stay at its present level, or do they agree that it is over valued?
§ Mr. BiffenThe whole point of having a freely floating pound is that it shall be freely floating, and not subject to the oppressive value judgments of politicians. The right hon. Gentleman may wish to know that the pound, relative to the dollar, has fallen by 9 per cent. since October 1980, and relative to the basket of currencies by 3½ per cent. during the past month.