§ 11. Mr. BeithTo ask the Chancellor of the Duchy of Lancaster whether he will make a statement on the rate of growth of British exports.
§ Mr. MaudeSince 1979, visible exports have increased in volume—that is in real terms—by 30 per cent., and invisible exports by about 40 per cent. I am sure that the hon. Gentleman will want to join us in congratulating all those businesses that have worked hard to achieve that major success story.
§ Mr. BeithIs the Minister aware that the Budget prediction that trade will be in balance by 1992 depends upon an annual export growth of 7 per cent. and an import growth 4 per cent. lower than that? By how far are we currently failing to achieve that and has the prediction of the balance of trade by 1992 been revised?
§ Mr. MaudeI am sure that the hon. Gentleman will be reassured to be told that during the three months ending in April 1989, non-oil exports have risen by 7.5 per cent. compared with the equivalent three months a year ago, and that represents the sort of growth in exports about which the hon. Gentleman will be relieved and delighted to hear.
§ Mr. SoamesDoes my hon. Friend agree that the Government's work in establishing and promoting the 1992 programme in Europe has been of great benefit to our exporting companies, but is he also aware of the considerable confusion that is caused to British industry by the rather garbled and confused message that appears to have emanated from the Government on European policy since then? Will my hon. Friend clarify to the House what steps the Government intend to take to stabilise the exchange control mechanism and when they will all be singing one song?
§ Mr. MaudeI am sure that if my hon. Friend has been listening carefully he will have heard not only one song but a very good song. We are fully engaged in the EC, we have led in many respects and we have achieved a great many successes. In continuing to improve our exports, nothing can substitute for the ability of firms to produce the goods and services that their customers want, but we have done a great deal in providing the sort of help that is needed to do that.
§ Mr. MorganFurther to the question asked by the hon. Member for Crawley (Mr. Soames), which did not fully comply with the EEC brown nose directive, unlike the question from the hon. Member for Hexham (Mr. Amos), in what year does the Minister expect our trade to be in balance and to be able to make good the accumulated trade deficit of the past three or four years?
§ Mr. MaudeI see no reason to divert from the most recent forecast of my right hon. Friend the Chancellor of the Exchequer.
§ Mr. PageWhile welcoming the increase in the volume of our exports, may I ask what effect a reduction in soft loans will have on their rate of growth, and do any of our foreign competitors intend either to increase or to decrease their support in that respect?
§ Mr. MaudeClearly, changes in the amount and extent of soft loans available do have an effect. However, that 329 matter is not one with which I deal directly, but no doubt my hon. Friend will receive at some stage a satisfactory reply from my hon. Friend the Minister for Trade. I make no apology for repeating that nothing can substitute for the ability of firms to compete in the market place.
§ Mr. John GarrettWhat does the Minister have to say about the Confederation of British Industry survey published this week, which shows that our export prospects are the worst for two and half years? Is not that directly attributable to the Minister's right hon. Friend the one-club Chancellor, whose policies are crippling British exports?
§ Mr. MaudeThe hon. Gentleman is wholly wrong. As I said in an earlier answer to one of his hon. Friends, the effect of interest rates on business is considerably less than the effect of unjustified increases in earnings. As to the competitiveness of exchange rates, the hon. Gentleman will recollect that Japan increased exports considerably even when the value of the yen doubled. I say again that it is the ability of businesses to win markets that matters, not what the Government do.