HC Deb 27 October 1983 vol 47 cc417-8
8. Mr. Canavan

asked the Chancellor of the Exchequer what has been the change in international competitiveness of British industry since May 1979.

Mr. Moore

There is no unique measure of international competitiveness, and no way of measuring important non-price factors, but since May 1979 the United Kingdom has sold nearly £22 billion more goods and services overseas than we have imported.

Mr. Canavan

Now that the Tories have made British industry 15 per cent. less competitive than in 1979, when we have a Prime Minister who yearns for Victorian times, when industrial production is about the lowest since the industrial revolution and our trade in goods is in deficit for the first time since the 16th century, how much further back will the clock be turned because the Department of Trade and Industry has recently suffered from a Norman invasion?

Mr. Moore

I remind the hon. Gentleman, who comes from a Scottish constituency, of the relevance of oil to the Scottish and United Kingdom economies—a key factor in the creation of new jobs. We all recognise the difficulties faced by manufacturing in a world recession, but I hope the hon. Gentleman will recognise that the economy includes other areas, such as oil.

Mr. Rathbone

What benefit or influence will the introduction of free ports have on international competitiveness? If it is on the plus side, will my hon. Friend press his colleagues in the Treasury to increase the number of free ports that will be authorised this week?

Mr. Moore

I congratulate my hon. Friend on his ingenuity in attaching this matter to question No. 8. I am sure that my hon. Friends will recognise the way in which he has put his constituency point across.

Mr. Straw

Is the Financial Secretary aware that his answer to my hon. Friend the Member for Falkirk, West (Mr. Canavan) was outrageously evasive? Has the Treasury Bench now decided to give only statistical answers where it thinks such statistics help it? Is it not the case that over the past four years we have lost 15 per cent. on competitiveness through measures that the Government previously accepted? Has not the CBI claimed that we are now 30 per cent. less competitive than we were in 1975 and that most of the loss has occurred since 1979? Does not this massive loss of competitiveness confound the Minister's ludicrous claims that Britain is the country in Europe that is now making a major recovery? No country in Europe has suffered a worse recession than the United Kingdom or has further to go to return to its competitive position in 1979. Will the Financial Secretary——

Mr. Speaker

Order. The House will accept that the same rules must apply to Front Benchers as apply to Back Benchers.

Mr. Moore

I thought that certain elections did not take place until later today. Perhaps I can reply to part of the hon. Gentleman's question. Rather than swapping detailed statistics, it might be more relevant to look at the specifics of some aspects of our trade. For example, over the past four years our trade with France has increased in gross value by more than 50 per cent. while the exchange rate has appreciated against the French franc by 31 per cent. When one talks about trade, one does not merely talk of oil. We can continue to swap data across the floor. The hon. Gentleman referred to the IMF series data. I remind him that compared with the first quarter of 1981 our relative actual unit labour costs have been reduced by 21 per cent.