HC Deb 10 February 1988 vol 127 cc339-40
3. Mr. Patrick Thompson

To ask the Chancellor of the Duchy of Lancaster what was the level of output in the telecommunication industry in (a) 1986 and (b) 1980; and what was the level of exports in the industry over the same period.

The Parliamentary Under-Secretary of State for Industry and Consumer Affairs (Mr. John Butcher)

Manufacturers' sales of equipment increased from £953 million in 1980 to £1,750 million in 1986. Exports were 10 per cent. of sales in 1980 and 12.5 per cent. of sales in 1986. There are no comparable statistics for the services sector.

Mr. Thompson

I thank my hon. Friend for that encouraging reply, which shows the kind of improvement in the telecommunications industry and its performance that we all want to see. Some time ago my hon. Friend was quoted as saying that it was easier to export telecommunications equipment to Detroit than to Dusseldorf. Does he still say that today?

Mr. Butcher

Regrettably, yes. Non-tariff barriers are still operated in Europe. Some of the post, telegraph and telecommunications organisations in Europe still operate monopoly purchasing practices. It is our view that the European market will have to move towards a more liberal environment. In a number of efforts pursued by my Department, and in bilateral meetings which I have undertaken with other European colleagues, we must do our best to deliver that open market as soon as possible, because our own industry is now well poised to take advantage of it.

Mr. Darling

When considering the level of output and exports of the telecommunications industry, has the Minister discussed with British Telecom, which is a major component of the matter, the sale of magnetic tapes containing telephone directory and other information, possibly to people abroad, including fanatical religious organisations? Has he had any discussions with BT in view of the widespread concern about such possible sales?

Mr. Butcher

That has not figured on the agenda of any discussions that I have had with counterparts elsewhere. I have noted carefully the hon. Gentleman's comments and, on the face of it, I share his concern. I shall examine his comments carefully and, if necessary, write appropriately to BT.

Mr. Michael Marshall

Will my hon. Friend take this opportunity to be a little less modest about his efforts in opening up the European telecommunications services market? Is it not the case that his Department has made some headway in getting other PTTs to agree that Mercury, for example, should have access to markets? Will he bring us up to date on where he sees that telecommunications development going?

Mr. Butcher

Most countries in the European Community are looking closely, and some with considerable envy, at the British experience. In bilateral discussions I have found that Spain, France and the Netherlands are now ready to consider applications from Mercury for access and interconnection to such markets. I am encouraged by progress so far. It is encouraging to see that our European colleagues are interested in the sort of competition that has benefited the United Kingdom to such a great extent.