§ 14. Mr. PawseyTo ask the President of the Board of Trade what are the top 10 export industries; and what level of exports they are each responsible for in percentage terms.
§ Mr. NeedhamAerospace, industrial chemicals, office equipment and computers and motor vehicles industries each contributed 6 per cent. Oil and gas, the electronic consumer goods and components industry, telecommunication equipment and control systems and machinery for general industrial use contributed 4 per cent. Motor vehicle parts and pharmaceuticals industries contributed 3 per cent.
§ Mr. PawseyMay I thank my hon. Friend for that complete reply which underlines the importance of manufacturing industry to the economy and, harking back to the question by the hon. Member for Halifax (Mrs. Mahon), also to jobs? Will my hon. Friend therefore join me in congratulating companies like GEC Alstom Ltd and Cegelec Ltd in my constituency, which have outstanding records in exports? Does he agree that much more might be done to help exporters, for example, by further reducing rates of export credit guarantees?
§ Mr. NeedhamI agree with my hon. Friend about the importance of manufacturing industry to exports. I am sure my hon. Friend would like to know that since 1981 the volume of United Kingdom manufactured exports has increased by four fifths, faster than France, Germany, Italy, the United States and Japan. The range of industries that I read out shows the depth and breadth of industry involved and its success. My hon. Friend is right to point to GEC Alstom Ltd in his constituency. GEC, one of the most successful companies in the country, is already saying that in the 1990s it will double its exports to the Pacific rim. I am sure that it will succeed in that.
§ Ms ShortDoes the Minister agree that, after the longest recession since the 1930s, the fact that Britain has a balance of payments deficit means that we have had a serious failure over the last 14 years in our strategy for manufacturing industry? Does he agree that that is very worrying for the future? Can he tell us whether the Government have any policies or strategy to increase investment in manufacturing, or will they just write off the future?
§ Mr. NeedhamThe hon. Lady and her hon. Friends write off the future every time they stand on their feet, by knocking British manufacturing and its successes. British industry is now in a position to capture an increasing number of markets in the world; the Department of Trade and Industry is standing alongside it in achieving that objective. As I remarked just now, if the hon. Lady was listening, the capital goods industry has already said that in the next seven years it will double its exports from £10 billion to £20 billion. No doubt the hon. Lady would like to come out selling.
§ Mrs. PeacockMy hon. Friend will be aware of the importance of textiles in our export market. Can he tell the House whether he has received any representations on the report that south Korea is about to add fairly high tariffs to our wool textile goods exported to that country?
§ Mr. NeedhamI have not as yet. As I intend to go to Korea tomorrow, I shall raise the matter with the Korean Government.
§ Mr. BellIn reference to the question put by the hon. Member for Rugby and Kenilworth (Mr. Pawsey) about export credit guarantees, may we welcome the extension of the guarantees to Russia following the G7 talks in Japan? Will the Minister confirm that the major issue facing exporters is the future of the 20 per cent. political risk cover guaranteed by the Department of Trade and Industry? It is supposed to expire at the end of 1994. When may we expect a statement from the Minister that it will be extended?
§ Mr. NeedhamWe are considering the matter through ECGD with NCM and Trade Indemnity. I believe that the hon. Member is referring to the reinsurance aspects of political risk. Companies have been successful in managing to place some 90 per cent. of that in the private market this year, but I am keeping the matter under close review.