HC Deb 27 February 1985 vol 74 cc329-31
12. Mr. Willie W. Hamilton

asked the Secretary of State for Trade and Industry what was the United Kingdom's share of world trade in manufactured goods in each of the last four years; and what are the trends in the current year.

Mr. Tebbit

In 1981 the United Kingdom share of world trade in manufactured goods was 6.25 per cent. This information is not available for later years.

Mr. Hamilton

Is the Minister aware that various estimates show that the proportion is decreasing? Is not one of the main reasons for that the fact that since 1979 investment in manufacturing industry has gone down by about 30 per cent. and that in 1984 we were importing £4,000 million worth more of manufactured goods than we were exporting? This is deplorable. What do the Government intend to do about it?

Mr. Tebbit

rose—

Mr. Hamilton

Never mind the pained expression.

Mr. Tebbit

It is a rather pained expression because I find it boring to try to teach the hon. Gentleman basic economics when he is not ready to learn them. I have heard the hon. Gentleman express sympathy for the cause of the less developed world and the newly industrialised countries. I should have thought he would understand that, as they come into the world of manufacturing exports, it is inevitable that the share of some other countries will be reduced and that he will want the developing countries to take a larger share.

Mr. Waller

Will my right hon. Friend bear in mind the fact that our share of the world's manufacturing market is very seriously affected by the barriers that other countries may raise against us? When he considers a successor multi-fibre arrangement, will he take into account the fact that the United States, which has a considerable market for textile imports, also operates considerable tariff barriers against imports? Will he also take into account the fact that if the European Community were to get rid of quotas without commensurate action being taken by the United States, it would have a serious effect upon industry, particularly upon employment?

Mr. Tebbit

Yes, I shall, but my task in combating protectionism in the United States, particularly in textiles, will not be made any easier for me if I find, when I go to the United States, that the remarks of my hon. Friend the Member for Macclesfield (Mr. Winterton) have been quoted there, and I am told that a most robust defence of protectionism is being made and that it is members of the Government party who are making it. Hon Members ought to be encouraged by the fact that in 1984 our volume of manufactured exports rose by 8.5 per cent. over 1983. That is not a bad performance.

Mr. Gould

But is the Secretary of State aware that it is not the developing countries, but Japan, Germany, France and Italy which have taken our share of the trade in manufactured goods? We are by now familiar with the right hon. Gentleman's pretence that he is not worried about this decline, but will he now come clean and tell us what progress has been made by the special working party that he set up to look into the problem?

Mr. Tebbit

I am slightly mystified by this special working party, about which I myself have not heard. I do not want to be boring, but I have to tell the hon. Gentleman that what matters is not the balance of any particular sector, or any particular trading partner, but the overall balance of trade. Last year was the fifth year running of a surplus on our current account. That record is unsurpassed since 1945.

Mr. Willie W. Hamilton

Oil.

Mr. Tebbit

The hon. Gentleman speaks of oil. I strongly suspect that if, in 20 years' time, the shadow Opposition spokesman on trade and industry says that the decline in our oil exports marks a total disaster for the British economy and my successor say, "But look at our manufactured exports," it will be dismissed as irrelevant. The one thing that the Opposition do not like is good news. That is why they have not quoted the latest CBI report on exports, particularly on manufactured exports.

Mr. Williams

But is the Secretary of State utterly oblivious of the fact that for the first time in the modern industrial history of this country there is a deficit on manufactured trade? Does he realise that any upturn in manufactured exports that there happens to be at the moment is due to the fall in the pound, a fall for which the Government insist that they have no responsibility?

Mr. Tebbit

The right hon. Gentleman wants it both ways. I understand that yesterday his right hon. Friend the Leader of the Opposition described the fall in the value of the pound as a great British disaster. Now the right hon. Gentleman is saying that it is very good for British industry. The only criticism today is that we were not responsible for it. I wish to God he would get together with his right hon. Friend so that there is some consistency in what they say. I have to repeat to the right hon. Gentleman that our manufactured exports are recovering very well, that an 8.5 per cent. increase in volume over 12 months is not a bad record and that the CBI believes that the outlook is very, very good.