HC Deb 04 February 1993 vol 218 cc468-9
9. Mr. Knapman

To ask the Chancellor of the Exchequer what assessment he has made of the trend in export volumes arising from the figures for recent months.

Mr. Nelson

As my right hon. Friend the Chief Secretary said earlier, export volumes are at record levels. Their trend is firmly upwards, and manufactured export volumes are forecast to rise a further 7¼ per cent. in 1993.

Mr. Knapman

I congratulate my hon. Friend on that excellent reply and those encouraging figures. Does he agree that if we maintain low taxation, low interest rates and competitive exchange rates, we can expect more excellent figures?

Mr. Nelson

My hon. Friend is absolutely right. Those are necessary pre-conditions for a continued good export performance. The figures are positive. They are record levels across the board and not just for manufactured exports.

Mr. Campbell-Savours

Are export volumes helped when a west Cumberland company such as Circuit Foils UK, with an outstanding export record for exporting two thirds of its production, is simply closed down and the whole manufacturing operation shifted to Luxembourg? Should not the Government intervene to protect companies in this country that produce products of strategic importance to the nation's economy so as to ensure their survival within the United Kingdom?

Mr. Nelson

I understand the importance of both matters, although I believe that they are separate. Disregarding for the moment the question of strategic interest, the decisions of international companies must be a matter for their commercial judgment. I take it that the hon. Gentleman's question underlines the importance of inward investment here. While it is regrettable that we may lose some companies abroad occasionally, it is welcome indeed that we seem to be net gainers, as the decision by Hoover demonstrates.