§ 22. Mr. MaddenTo ask the Chancellor of the Exchequer which OECD countries have, by latest estimates, trade deficits that are bigger as a percentage of gross domestic product than the United Kingdom.
§ Mr. RyderInformation on the current account deficit in the United Kingdom is contained in the Central Statistical Office's latest balance of payments press release of 13 March 1990, and on United Kingdom gross domestic product in the CSO's national accounts press release of 21 December 1989. Figures for each of the other OECD countries are published by OECD in the December 1989 issue of "Economic Outlook".
§ Mr. MaddenCutting through all that verbiage, is not the reality that Britain's trade deficit is the largest in Europe and that this is a shameful record for the Government's economic policies over the past 11 years? Does the Minister remember that the former Chancellor, the unlamented right hon. Member for Blaby (Mr. Lawson), used to pooh-pooh the trade deficit by saying that it could be financed by invisible trade? What is the Government's excuse for the present shameful trade deficit?
§ Mr. RyderThe hon. Gentleman refers to Britain's trade deficit. Many other countries in the western world have a trade deficit, including the United States, Italy, Canada, Denmark, Finland, Greece, Iceland, Norway, Portugal, Spain, Sweden and Australia. The truth is that the British trade deficit is improving; the volume of manufacturing exports was up by 11 per cent. last year and the CBI believes that there will be further improvement in the months ahead. The hon. Gentleman is even gloomier than normal.
§ Mr. Nicholas BennettWill my hon. Friend speculate on the effect on Britain's trade performance if the Government were to support every inflationary wage 661 demand in sight, increase income tax and increase corporation tax—all policies supported by the Labour party?
§ Mr. RyderTo be fair to the Labour party, I am not sure whether it supports those policies. The Labour party has refused to say what its policies are. We have opinions from the Labour party, but no policies.
§ Mr. BoatengWe are used to the excuses of the Economic Secretary and this Government for our failures in relation to visible earnings. Will the hon. Gentleman give us what will no doubt become the usual excuse for our failure to secure a satisfactory position in relation to invisible earnings? Why do we, for the first time since the Napoleonic war, have a deficit in our invisible earnings? Is it because the right hon. Lady and her Government have succeeded in doing to our country's economy what Napoleon never did—destroy it?
§ Mr. RyderIf the hon. Gentleman reads the press releases, he will find that during the past year invisibles have been erratic, but we hope that their performance will improve this year. The hon. Gentleman should read the details of the press releases from the CSO rather more carefully than, I fancy, he has to date.
§ Mr. DickensDoes my hon. Friend agree that, day in and day out in this House, we are subjected to the Opposition rubbishing British industry? Is not the truth of the matter that the industrial base of this nation is as strong as ever, and that we are importing goods so that we may value-add to them and sell them at a profit? This nation is outstripping the rest of Europe in production and in the creation of jobs. Why do the Opposition keep rubbishing our industry?
§ Mr. RyderThe short answer is that my hon. Friend speaks for Britain, and the Labour party does not.