§ 3. Mrs. GormanTo ask the Secretary of State for Trade and Industry when he last met his Japanese and United States counterparts to discuss the United Kingdom trade deficit; and if he will make a statement.
§ Mr. RidleyI have regular meetings with my Japanese and United States counterparts at which the full range of trade issues affecting our countries are discussed.
§ Mrs. GormanI thank my right hon. Friend for his reply. Does he agree, to paraphrase what the Leader of the Opposition said last week, that that question is even sillier than it seems because the inflow of capital from the United States and Japan far exceeds whatever the trade deficit figure is said to be? It is ridiculous for the House frequently to flagellate itself about trade deficits when more than 190 top European companies are based in Britain and operate in other countries remitting profits to Britain. The trade balance merely measures packets of salt going backwards and forwards across Customs.
§ Mr. RidleyI agree with my hon. Friend that Britain's massive investment in industrial and commercial assets overseas benefits probably more than 14 out of 15 people, if I may also quote the Leader of the Opposition. I must part company with her slightly on one matter because I should like to see the trade deficit reduced. It is important for us to regain our share of world trade, increase our exports and reduce our imports.
§ Mr. HoyleWould not it be true to say that that complacent and lethargic approach basically matches the performance of the Department of Trade and Industry? I am not aware of the Secretary of State's desires in relation to flagellation. He would do far better to address himself to the ever-growing deficit with Japan, the United States and West Germany and to use the endeavours of his Department to ensure that there is more investment in British industry and that it is more competitive in relation to those countries.
§ Mr. RidleyThe hon. Gentleman must keep the facts in mind. We have a tiny deficit with the United States and over the past four years we have had a surplus in total. The Japanese deficit is relatively small and is improving; the German deficit is the real problem. One cannot put those problems entirely at the door of the Government, as some of them result from the fact that British unit labour costs are rising at 8.1 per cent. annually, whereas our competitors' unit labour costs are not.
§ Mr. David MartinDoes my right hon. Friend agree that if reports that the BBC world service is to cut back on its service to Japan are true, that would have an unhelpful effect on our trading relationship with Japan?
§ Mr. RidleyI have no knowledge of those facts and that matter is the responsibility of my right hon. Friend the Foreign Secretary.