HC Deb 18 June 1986 vol 99 cc1041-2
14. Mr. Canavan

asked the Secretary of State for Trade and Industry what is the most up-to-date state of the United Kingdom balance of trade in manufactured goods.

Mr. Pattie

In the three months ended April there was a deficit of £1.1 billion.

Mr. Canavan

Does the Minister not have an iota of shame in him when he stands at the Dispatch Box month after month giving an appalling account of his stewardship? Does the Minister realise that if he were in charge of an industrial manufacturing company he would be sacked for gross incompetence and dereliction of duty?

Mr. Pattie

I offer the hon. Gentleman and the House some figures which I think will assist the hon. Gentleman in taking a sensible view of the matter. In 1970 the value of exports of manufactures was 50 per cent. higher than imports. In 1985 the value of exports of manufactures was 10 per cent. lower than imports. Over that 15-year period there had been a decline. The hon. Gentleman will be aware that British consumers had formed the view that British-produced goods were not well enough produced, well enough designed, properly priced or adequately supported by after-sales service. They had voted with their cheque books and bank accounts to buy imported goods. That is the criticism of the manufacturing industry.

Mr. Robert Atkins

Is my hon. Friend appreciative of the detrimental effects on the balance of trade if British Airways buys American engines rather than Rolls-Royce engines? In the circumstances, will he convey to the chairman of British Airways that hon. Members feel strongly that Rolls-Royce should get the order, in the interests of the British aerospace and aero-engine industry?

Mr. Pattie

I am sure that the chairman of British Airways reads the Official Report with the same attention as the chairman of the Post Office, to whom I referred earlier. I hope that he will read the opinion by my hon. Friend. We are in close touch with the Department of Transport on the matter and we hope for a satisfactory outcome.

Mr. John Smith

I thought that I heard the Minister say in an earlier answer that the deficit in the first quarter of 1986 was £1.1 billion. If that is correct, is it a revision of the figure of £1.4 billion, which is in the latest statistics issued by his Department? In addition, will the Minister tell us why he thinks it is adequate to blame British industry for the deficit in our trade and to accept no responsibility whatsoever for the policies of the Government, which have been deeply inimical to the success of British manufacturing industry?

Mr. Pattie

Yes, I will. I attempted to give a 15-year view of the fact that the manufacturing capability of this country appears, over that period—under successive Governments — to have been unable to meet the requirements of a variety of different markets both abroad and in this country. Therefore, companies find that their prospects and sales diminish and some go out of business. Then we have complaints from the hon. Member for Falkirk, West (Mr. Canavan). The answer is to follow policies, which the Government are doing, which improve the competitiveness of companies in this country so that their products and services will be more attractive.