§ 17. Miss WiddecombeTo ask the Chancellor of the Duchy of Lancaster if he will make a statement on progress on recent initiatives on export promotion.
§ Mr. Alan ClarkSince the launch of My Department's export initiative about 3,000 inquiries have been received in response to our advertisements in the press alone. I believe that the initiative has been well received by British industry and is succeeding in encouraging more businesses to export successfully.
§ Miss WiddecombeIs it true that the initiative is costing about £100 million per annum? If so, what is likely to be the long-term effect on our balance of payments? Will it repay this investment?
§ Mr. ClarkThe total amount expended in export promotion by the Government is £100 million per annum, or rather more. The initiative has a number of different headings, chiefly related to the giving of advice and information to would-be exporters. Export initiatives single market campaigns, such as Focus Germany and the Opportunity Japan campaigns have been extremely successful. During the year in which the campaign was in place, our exports to Germany increased by 17 per cent. compared with an international average increase of 3 per cent.
§ Mr. DalyellIs the Minister satisfied with the operation of the exchange equalisation account?
§ Mr. ClarkThe exchange equalisation account is a matter for my right hon. and hon. Friends in the Treasury. In so far as it affects the exchange rate, plainly, one has to accept that it is a transient and temporary phenomenon. Many traders would probably prefer it not to exist or to operate at all.