HC Deb 21 June 1982 vol 26 cc10-1
14. Mr. Ioan Evans

asked the Minister for Trade if he will make a statement on the trends in the balance of trade between the United Kingdom and the European Community countries, excluding oil and oil products.

Mr. Peter Rees

In this trade with the rest of the European Community the United Kingdom was in deficit by £1 billion in the first quarter of 1982 compared with a deficit of £1½ billion in the fourth quarter of 1981. However, this should be seen in the context of an overall surplus on the current account of the balance of payments of about £2 billion in these two quarters.

Mr. Evans

Would it not be better for the oil figures to be separated from the rest of the balance of payments figures when they are presented? Does the hon. and learned Gentleman agree that membership of the Common Market is disadvantageous for British consumers of agricultural produce and that it is not widely favourable for British manufacturing industry? What will the Government do to ensure that we get a better deal for manufacturing industry?

Mr. Rees

It would be unrealistic to exclude the oil figures, which are an important part of the national economy. As I have said on numerous occasions, the European Community is Britain's fastest growing market. I am sure that British industry in both the oil and non-oil sectors will continue to exploit to its profit and that of the United Kingdom the opportunities that are offered on the Continent of Europe.

Sir Anthony Meyer

Will my hon. and learned Friend explain carefully to Opposition Members that even our trade with the European Community in manufactures has a better export-import balance than with any of our other major trading partners in the industrial world?

Mr. Rees

It would take more than my modest powers of advocacy to overcome the prejudice of some Opposition Members and to persuade them to accept the advantages to Britain of membership of the European Community.

However, my hon. Friend has made a sound point. It is strongly to the advantage of British industry that we should be and should remain a member of the Community, which offers considerable scope for our exports and for other trading patterns.

Mr. Hooley

What industrial raw material do we need to import from Europe that is comparable to the oil that we send to it?

Mr. Rees

Certain types of food.

Mr. Teddy Taylor

If my hon. and learned Friend wants to get rid of prejudice and misunderstanding on these issues, will he tell us why the Government found no difficulty in telling the world about the tens of thousands of jobs that were lost because Japan made a £1 billion profit in manufacturing trade with Britain but made no assessment of the balance of payments deficit in manufactured goods of £1 million in three months with the Common Market? What is the difference?

Mr. Rees

We do not encounter on the Continent of Europe the same non-tariff barriers that we encounter in Japan. Secondly, the proportions are not quite of the same order.