HC Deb 19 July 1989 vol 157 cc340-1
15. Mr. Allen

To ask the Chancellor of the Duchy of Lancaster if he will list the countries within the European Community with which the United Kingdom is in a trade deficit.

Mr. Forth

In the 12 months to May, United Kingdom visible trade was in deficit with West Germany, Netherlands, Italy, France, Denmark, Belgium, Luxembourg and Portugal.

Mr. Allen

What do the Government intend to do about that?

Mr. Forth

The Government have in place a number of policies to make industry even more aware of the opportunities presented by the single European market and the 1992 campaign. We are following up our spectacular success in increasing awareness with a number of policies aimed at persuading British industry—only British industry, and no one else, can affect our trade figures—of the potential offered by the single European market and the markets beyond, so that industry can gird its loins and sell British products throughout the Community and beyond. We are confident that it will do so. In the three months to May, for example, exports to the Community grew strongly—by 8 per cent. over the previous three months—while imports fell by 1 per cent., so we are already on the right track.

Mr. Curry

Is not British private sector well ahead of the field in investing in manufacturing and service bases in the Community? Is not that the logic of the Community, and will not the profits made overseas be turned into dividends for the benefit of shareholders and workers in the United Kingdom?

Mr. Forth

Yes. My hon. Friend, who has unparalleled knowledge of such matters as a result of the service that he has given to the European Parliament over the past 10 years, is correct to point out that Britain has already made moves to take seriously the opportunities and challenges that the Community market presents. By investing throughout the continent, Britain is placing itself in a strong position to meet that challenge as we move towards the fulfilment of the single market.

Mr. McAllion

Is the Minister aware that Britain's deficit in visible trade with the rest of the EEC has increased fivefold since the Conservative Government came to power in 1979? Does he think that that increased deficit is a product of what he described earlier as a free and vigorous capitalist economy?

Mr. Forth

In a very real sense, any deficit is obviously a product of a free and liberal trading regime. It is always up to the wealth creators and those in trade and in business in any one economy to make the best of the trading opportunities available to them. I have attempted to describe how seriously we take those opportunities and what we are doing about them. I stress again that it is not the Government but business that can improve the trade position. We are confident that the business community will do so.