§ 11. Mr. Fisherasked the Chancellor of the Exchequer if he will make a statement of the effects of the current position of the £ sterling against non-dollar currencies on imports of manufactured goods.
§ Mr. Ian StewartThe level of imports is affected by a wide range of factors, of which the exchange rate is only one.
§ Mr. FisherIs the Minister aware that the balance of trade deficit on total manufactured goods will be approximately £2,500 million this year? Does he recognise that the level of the pound against non-dollar currencies is a major factor in the lack of competitiveness of our manufactured goods? When will the Chancellor take action to redress that balance and give our exporting industries the chance to compete effectively in the world?
§ Mr. StewartI am afraid that the hon. Gentleman, like many of his hon. Friends, seems to argue, on the one hand, that he wants exchange controls and on the other hand that the sterling exchange rate is too high. He cannot have it both ways. He should recognise that there has been a shift in all the developed industrial economies towards the service sector. If he were to look at the factors on competitiveness that I quoted to the hon. Member for Coventry, South-East (Mr. Nellist), he would see that they apply equally well to import substitution as to exports.