Manufactured Goods

HC Deb 04 November 1992 vol 213 cc263-4

1. Mr. George Howarth

To ask the President of the Board of Trade what was the balance of trade in manufactured goods for (a) 1978 and (b) the past 12 months; and if he will make a statement.

The Minister for Trade (Mr. Richard Needham)

The United Kingdom had a trade surplus in manufactured goods of £5.05 billion in 1978, with imports at £22.67 billion and exports at £27.72 billion. In the past 12 months, to September 1992, it had a deficit of £6.18 billion, with imports at £92.16 billion and exports at £85.98 billion. Export volume remains strong.

Mr. Howarth

Is not the picture even worse than that, because, every year since 1983, we have had a deficit in the balance of trade in manufactured goods, peaking in 1989 at just under £17 billion? When will the Government stop being so complacent about that appalling situation and do something about it? When will they put in place a strategy for manufacturing, instead of the inactivity and hopelessness that we have faced in the past few months?

Mr. Needham

The hon. Gentleman knows perfectly well that the trade deficit in manufactured goods has been a long time in coming. Between 1974 and 1979, imports increased by some 37 per cent. and export volumes by 11 per cent. whereas, between 1979 and 1991, imports increased by 100 per cent. and export volumes by 59 per cent. The figures under the previous Labour Government were three times worse than under this Administration.

Mr. Fry

In view of the disappointing figures that my hon. Friend has just given, will he explain why he has not agreed with our Community partners to impose limits on the importation of Chinese footwear and has acted against the advice of the British Footwear Manufacturers Federation and the vast majority of footwear manufacturers? The failure to take that step will result in fewer jobs in this country and increased imports.

Mr. Needham

The volume increases in exports over the past 13 years has averaged 4 per cent compared with 2 per cent. under the previous Administration. In fact, in the past four years our share of world markets has stabilised and, if anything, increased. I know that my hon. Friend feels very strongly about the footwear industry, but Chinese imports represent a small proportion of total footwear sales in Britain. We will continue to consider carefully whether the EC rules have been breached in relation to the import of footwear, but, at the moment, we believe that it is not possible to take the action that my hon. Friend requests within the free trade environment of the Community.

Mr. Barry Jones

Is the Minister aware of the huge job losses in the aerospace, steel and textile industries? Why are the Government so complacent? Why do they not bring before the House a policy to promote and defend manufacturing industry in Britain?

Mr. Needham

The hon. Gentleman knows from his own constituency experience what has happened to the steel industry, which has changed dramatically in the past few years. He knows that British steel exports are 10 times higher than they were several years ago. He will be aware also from his constituency experience of the number of lost jobs that have been replaced by those created by companies such as Toyota. Of course, the Government accept that British industry and manufacturing are crucial and that is why support for our export volumes and export promotion is a vital ingredient of our policy.

Mr. Quentin Davies

Is not devaluation potentially a most encouraging prospect for British manufacturing industry?

Mr. Needham

My hon. Friend is absolutely right. We now have a tremendous opportunity—I speak as Minister for Trade—to get out and sell British products abroad. We also now have an opportunity to ensure that we can replace imports with locally produced goods.