HC Deb 20 June 1990 vol 174 c922
13. Mr. Jack Thompson

To ask the Secretary of State for Trade and Industry what is the current balance of trade in manufactured goods with West Germany.

Mr. Ridley

In the four months ended April 1990 the United Kingdom trade deficit in manufactured goods with West Germany was £3.1 billion.

Mr. Thompson

You will have noted, Mr. Speaker, the reference by Ministers to the Labour party's policy document. At least we have a policy for trade and industry. The Secretary of State's figure of £3.1 billion for the first four months of this year suggests that the Government will match, if not exceed, last year's deficit of £9.6 billion, which was part of a deficit of f 14.5 billion with EEC countries. Has the Secretary of State learnt any lessons from the West German Government's attitude to industry? It supports industry with railway systems, infrastructure and support for training. There are significant lessons to be learnt from our European neighbours about trade and industry, but has the Secretary of State learnt any yet?

Mr. Ridley

I have learnt one lesson: to impose a further burden on British industry of 0.5 per cent. payroll tax on its total labour costs, yielding £1 billion, would be crippling to its competitiveness and would make the deficit with West Germany worse. That is the policy contained in the Labour party's document, to which the hon. Gentleman referred. Will he now formally denounce his Front Bench for suggesting imposing penalties on our industry which would make our trade deficit worse? Will he admit that it is time that the Labour party thought again?

Mr. Roger King

Does my right hon. Friend agree that the way to beat countries such as Germany is to produce finer and better quality goods? Will he join me in congratulating Tom Walkinshaw Racing and Jaguar Cars on their magnificent Le Mans victory, when they came first and second, beating a West German Porsche well and truly into third place?

Mr. Ridley

I agree with my hon. Friend that the way to improve our trade performance is to improve quality and our competitiveness so that we can sell in every market of the world. Of course, I join my hon. Friend in congratulating those who won that victory. It is a great British success which I want to see translated into a dividend in terms of sales around the world.