Business Surveys (Hansard, 6 May 1993)

§ 8. Mr. Patrick Thompson
To ask the Chancellor of the Exchequer if he will make a statement about the results of business surveys taken since the Budget.

§ The Paymaster General (Sir John Cope)
The unanimous message of recent business surveys is that confidence has strengthened and industry is moving out of recession.

§ Mr. Thompson
I am sure that my right hon. Friend will agree that that is more good news for the Martyn Lewis school of broadcasters. I hope that note is taken of that. Has my right hon. Friend had a chance to read the latest quarterly economic survey by the Norfolk and Waveney 277 chamber of commerce, which shows a dramatic improvement in confidence, in orders and in deliveries on the home front and, perhaps even more important, an improvement in export performance?
The survey also shows that there is recognition of the need to continue to keep inflation down and to provide stability, and also an appreciation of the measures that the Government introduced in the Budget and in the autumn statement to help the construction industry and, most important, to help exporters. That is good news. Should we not broadcast it?

§ Sir John Cope
Yes, it is good news for everybody, although I realise that some Opposition Members have difficulty in recognising it. I have not yet had an opportunity to see the survey about Norfolk to which my hon. Friend referred. Nevertheless, it sounds as though the report sends out the same message as that sent out by all the other surveys that I have seen recently.

§ Ms Eagle
Given the fact that it was the accidental almost 20 per cent. devaluation of the pound that triggered the recovery that we are seeing at the moment, what are the implications, in the Minister's opinion, of the gradual rise of the pound over the past few weeks?

§ Sir John Cope
The hon. Lady is quite wrong in the first part of her assertion. If she looks at the figures, she will find that the improvement started before the events to which she drew attention. It is there for all to see and many of the figures have already been referred to this afternoon.
With regard to the exchange rate, the hon. Lady will know that we do not forecast and have no target in that respect. However, of course it is important and we watch it closely.

§ Mr. Butcher
Does my right hon. Friend agree that business surveys show that small and medium-sized manufacturing companies are concerned about the shortage of risk capital for those unquoted companies? Does he further agree that there would be a dramatic effect in our competitive position vis-a-vis our fellow Europeans if this country were to consider the radical measure of abolishing capital taxation, thus making our country a haven for the inward location of capital, which is very scarce around the world, and perhaps learn from the lessons of Lee Kuan Yew in Singapore? That would give us a serious and important competitive edge.

§ Sir John Cope
I certainly agree with my hon. Friend about the importance of small and medium-sized firms. The small firms part of the CBI survey, to which attention was drawn recently, shows that they are expecting to employ more people in the next few months. That is confirmed very strongly by surveys carried out by the Institute of Directors and by 3i. Chamber of commerce and Dun and Bradstreet surveys are also positive. All that emphasises the importance of small firms.
As for my hon. Friend's taxation proposals, all I would say is that we have recently presented a Budget and the Finance Bill which contain a series of taxation proposals. Those are the proposals which we are pursuing for the time being.

§ Mr. Darling
Have those business surveys included the subject of boardroom pay? Some boardroom members appear to have been to the Martyn Lewis school of salaries. Will the Government take the opportunity to 278 condemn some executives who have been taking exorbitant pay levels, such as the reputed £10 million paid to a Royal Bank of Scotland executive, when those executives and Ministers have been calling on the less-well-off to take small or no pay increases? What are the Government proposing to do to ensure that everyone is treated in the same way and that the people who already have a great deal do not continue to line their pockets at the expense of others?

§ Sir John Cope
I am not going to comment on individual salaries or amounts of remuneration. However, the hon. Gentleman and the House know that the Government and Ministers set an example in that respect this year which I would like to see followed much more fully by leaders in industry and commerce—as indeed it has been by Members of this House.